I hope you are well and are ready for another Saskatchewan winter! I wanted to take a few minutes of your time to update you on our current market!
As the Bank of Canada continues to fight inflation with interest rate hikes, we have been asked our opinion on the impact it will have on the Saskatoons housing market. Our short answer is, we see minimal risk to our housing market.
The Saskatchewan economy remains strong and is still the most affordable Province to live in within Canada. Although interest rates have historically had an adverse effect on prices, low supply continues to keep upward pressure on prices. We are seeing a low housing supply in our city (25% below the 10-year average) and with construction costs high and labor short, we do not see this trend changing soon.
Let’s compare this with the last financial crisis in 2007-2008. During that financial crisis, Saskatchewan was one of the only places (State or Province) in all of North America that did not see 2 consecutive quarters (a definition of recession) decrease in GDP. Saskatchewan’s economy will remain strong over the short term. A conference board of Canada article recently stated that “Economic growth in Saskatoon is expected to outpace 12 other major cities in Canada with 7.2 percent in real GDP growth this year and 3.9 percent next year.”
Population growth. Our city continues to grow continually putting pressure on the housing supply. Did you know our largest demographic is the 30-40 age group? Yes, not the boomers. Saskatoon is young, prosperous, and affordable.
Real Estate in Saskatoon, historically, has been a safe and non-volatile investment. Year over year our benchmark price is up 4.4% for the city.
This is a quick look at our opinion, supported by facts. There are a lot of good things happening here. Don’t let the macroeconomic data scare you. If you want a more microeconomic view (or info breakdown for your city if it is Martensville or Warman etc.), give me a call, text, or DM. I am happy to help!