You might have noticed that real estate sales prices are going up in the Regina market. This results from the housing market trends in large cities like Toronto, Vancouver, and Montreal, influencing people in Canada to move to other areas due to their high cost of living.
It might also come to your attention that the COVID-19 pandemic has sparked super-low interest rates, and the wish to move to smaller cities, towns and rural areas has skyrocketed with the average price of homes there. Market demand is increasing rapidly.
Although the country has certainly experienced the impact of the worldwide pandemic in the real estate industry, the exact effect on the market is different for every area. When seeing the national average price, we may think that the result is the same for all markets nationwide, but the figure may be inadvertently misleading. Smaller provinces may display different market figures, as displayed by the Canadian Real Estate Association.
In Saskatchewan, one may observe that the average housing prices are recorded below the average home price displayed in nearby provinces. However, the housing market here does show that its average sale price is moving upwards when looking at new listings.
In this article, Leenan Homes will focus on the growth experienced in the Regina real estate market so you know what to expect if you’re thinking of purchasing a home here!
Regina Housing Market is Trending Upwards
On the whole, the Saskatchewan housing market growth is relatively less steep compared to other areas of Canada. Still, a high degree of upwards movement can be observed, especially in Regina due to the demand.
In 2021, particularly in the initial months, there’s been a notable increase in residential sales in Regina's market. If we take a look at the numbers gathered from the Saskatchewan REALTORS Association (SRA), the sales percentage in Regina jumps 70% if we compare year-on-year from March 2020 to March 2021. This notable increase within a one-year time span is considerable.
This figure is also striking given that the percentage increase is 50.2% higher if you compare it to the five-year average in the city of Regina, Canada. It’s also 48.7% higher within the ten-year average of the Regina real estate market.
As April 2021 came around, it can be noted that the upward trend continued. Regina’s home sales boomed and scored a 172.2% increase year-on-year compared to April 2020. The year-to-date sales soared to 91% in 2021 in contrast to the figures back in January to April 2020.
Since sales per unit had risen and the demand continued to mount, the housing prices increased as a reflection of the upward trend. Even the price of single-family homes inched towards an increase of 8.5% in the area as measured by the MLS Home Price Index (HPI).
If you check the figures of other regions in the country though, the price increase isn’t as dramatic as the other larger markets’ movement in pricing, so homebuying is still attainable here.
Given that the housing prices are continuing their upward climb, the demand has been steady. The sales volume in Regina has shown to double with the volume of housing units sold. The data reflects that the sales increase in the city has reached 207.3%, hitting record levels. This can be attributed to the solid first quarter, showing the year-to-date sales volume at 103.4% higher than the homes sold in the initial four months of 2020.
An essential way of setting the housing prices at a low rate is to keep a balance between housing market supply and demand. In Regina, one can find that active listings have dropped a bit but the levels are still strong, preventing the prices from shooting up in the future.
In April 2021, one can notice a 129.8% increase in new listings. It’s considerably above the five-year average figure by 23.6% and above the ten-year average by 23.1% respectively. The year-to-date listings record also show a surge of 44.5%.
Additionally, high housing demand in the city of Regina shows an inventory of 3.1 months by the last part of April. This translates as selling off a property in a little over a 3-month period. However, at present, demand is rising given that a home will be available on the market in a mere average of 40 days if we based on the new listings figures in April 2021. Inventory levels can't keep up.
Regina Housing Market’s Growth
To ensure that the Regina housing market remains steady, the number of new listings needs to increase a bit. This will lead to stability in the prices and maintenance of the affordable housing costs in the same period, especially to the homeowners purchasing for the first time.
Those who want to take advantage of the low-interest rates can decide to invest in the wildly attractive and stable housing market in Regina!
Custom Home Building and Home Remodelling in Regina
For prospective homebuyers who want to have a house in Regina, Leenan Homes can help renovate or even build your dream house! We are a professional team of custom home building and remodelling experts that help in the designing, planning, and customizing of your house according to your needs.
We can construct any house in Regina and handle full and partial renovations as well. We’ve been serving the greater Regina area and its neighboring regions in their building and remodeling projects, from large-scale to small-scale undertakings. This way, you also won't have to worry about market trends as much!
Careful thought is integrated into the design, planning, and construction. The unique vision of the client is taken into solid account. Whether you want to personalize a luxury home, create huge property upgrades, or delve into a commercial project, Leenan Homes is ready to take on the challenge!
Your voice will be heard throughout the entire design and construction process. Your personal vision comes to life with our work! Leenan Homes is here to lend our technical skills and deep expertise. We’re available for a consultation at (306) 205 6252, so feel free to contact us today!