MOOSE JAW — Home sales in Moose Jaw in December 2022 were 10 per cent higher compared to December 2021, but total sales for last year were 10 per cent lower than the year before.
There were 32 homes sold in Canada’s Most Notorious City last month, a decline from 35 units — or 10 per cent — in December 2021, data from the Saskatchewan Realtors Association (SRA) shows.
There were 35 new listings in December, an increase from 33 units — or six per cent — last December. Meanwhile, inventory levels slipped to 115 units, a decline from 124 homes — eight per cent — the year before.
There were 3.59 months of supply of homes last month, a decline from 4.19 months of supply — a 17-per-cent drop — in December 2021, the report said. Meanwhile, homes stayed on the market for 62 days.
The average home price in Moose Jaw last month was $282,202, a drop of 61 per cent year-over-year. Meanwhile, the benchmark price was $228,200, unchanged from December 2021.
“Benchmark price reflects the price of a typical or average home for a specific location. Average and median prices are easily swayed by what sold in that time frame,” the SRA explained. “As a benchmark price is based on a typical home, price changes more accurately represent true price changes in the market as it is an apples-to-apples comparison.”
The 10-year average for December shows there are usually 24 homes sold, 39 new listings, 200 homes in inventory, 9.19 months of supply, 67 days for homes on the market, an average price of $221,978 and a benchmark price of $220,710.
For all of 2022 (year-to-date, YTD), the report indicated there were 605 homes sold (a 10-per-cent drop from 2021), 874 new listings, 161 homes in inventory, 3.18 months of supply, 46 days for homes on the market, an average price of $252,864 and a benchmark price of $237,417.
The 10-year average for YTD sales in a year shows there are usually 526 homes sold, 1,023 homes listed, 265 homes in inventory, 6.24 months of supply, 61 days for units to be on the market, an average price of $238,170 and a benchmark price of $224,477.
Record sales of apartment condominiums were not enough to offset declining sales in detached homes, resulting in a 12-per-cent decline in residential sales in 2022. While sales eased relative to 2021 — a record year — the 15,334 recorded sales last year were 15-per-cent higher than long-term averages, the SRA said.
As many markets across the country experience a strong shift in demand, Saskatchewan continues to report stronger sales than pre-pandemic levels.
There were 25,089 new listings in 2022, a seven-per-cent decline from 2021 and well below long-term trends. While the pace of inventory decline eased over the year’s second half, 2022 inventory levels were 11-per-cent below levels seen in 2021 and 25-per-cent below 10-year averages.
Much of the decline in supply was driven by properties priced below $500,000, resulting in tight conditions in the lower-priced segment of the market.
“Without question, higher lending rates are contributing to the pullback in sales. We saw the Bank of Canada raise interest rates seven times in 2022,” said SRA CEO Chris Guérette. “When paired with declining inventory levels, particularly in homes priced below $500,000, we do see that having an impact on sales.”
Following strong growth throughout the spring, benchmark prices eased toward the end of the year. While many regions recently reported downward price adjustments, home prices rose annually. Overall benchmark prices for 2022 were over four-per-cent higher than the year prior.
“The housing market is changing as consumers adjust to higher lending rates and rising costs of living. That said, Saskatchewan continues to fare better than many regions across the country and we expect that to continue in 2023,” said Guérette.
“With prospective buyers having to qualify at higher rates, our biggest concern heading into the new year is the lack of supply in homes priced below $500,000.”