Experts and economists are expecting a continued cold spell for Canada housing market in 2023, but Saskatoon is hoping to be a little different.
High mortgage rateslow inventory and uncertainty about whether bank of canada Will raise interest rates further, has been cited as the reason for the anticipated cooling across the country.
Canada Housing Market Outlook 2023: Here’s What Buyers And Sellers Can Expect
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Re/Max Canada gave its housing outlook for the new year with prices expected to fall in many cities across the country, but prices in Saskatoon are expected to rise by up to three per cent.
Ashley Turner with Century 21 in Saskatoon says the current state of the housing market is very tight.
“It’s totally tight, I checked this morning, we’re down to 825 active listings in town,” Turner said.
That’s a low number, he said, adding that the number of listings under $500,000 is still low, making affordable inventory difficult to find.
Turner said it would ease interest rates and loosen the market to build homes for buyers rather than renters.
She said she has seen frustration from buyers, noting that good deals go quickly.
“A lot of people are staying put because they can’t find the next house they really want to live in.”
Turner expects the market for Saskatoon in 2023 to be driven by first-time home buyers and immigrants.
Chris Guérette of the Saskatchewan Realtors’ Association says there is pressure on existing inventory right now, adding that he also expects housing prices to rise in the future.
“We have a growth plan for 2030 – we need to build between 94,000 and 144,000 units over the next seven years if we want to keep pace with it,” Guerrette said.
This is a significant number, he said, considering that over a 30-year period starting in 1990, a total of 96,000 units were manufactured.
Guerrette said meeting that goal will require cooperation between multiple organizations and governments.
He said that there is demand, but there is a shortage in supply.
“Our view is that we really have to look at supply.”
Aspects such as building more homes, densifying neighborhoods and creating opportunities for landlords to offer rental space for additional income need to be addressed, he added.
Citing economic activity and immigration in Saskatchewan, Guerrette expects the province to do better than many other parts of Canada.
Nicole Burgess of the Saskatoon and Region Home Builders Association says the province is facing some challenging times.
“So what we’ve seen is a pullback from construction within our city as buyers really wait and see what the interest rate environment is like,” Burgess said.
It’s worrying to see a lack of housing options in the city with projections for population growth – there just isn’t enough housing to go around, she said.
Burgess suggested the province needed to approach the housing crisis from a policy perspective.
“What we’ve seen is that within the last quarter, about 48 percent of the current inventory under construction has actually been put up for rental.”
That said, some builders are also forging ahead in the world of refurbishment.
Burgess said potential buyers are being pushed to the side or priced out of the market, which in turn is putting pressure on the rental market.
She said there is a light at the end of the tunnel, however, which she expects will happen once interest rates stabilize and buyer confidence returns. However, she said housing supply would still need to be addressed.
– Global News’ With files from Anne Gaviola, Rachel Gilmore and Craig Lord
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