The housing market in this country seems to defy gravity. And Saskatchewan’s residential real estate numbers are a case in point.
When markets are acting normally, higher demand usually means higher prices which, in turn, triggers a willingness by suppliers to increase inventories. But we’re seeing something out of the ordinary in housing markets.
Last month, for example, Saskatchewan saw home sales rise 18-percent over last year and nearly 30-percent above the ten-year average. Yet, inventories are declining….23-percent in the last year which is more than 40-percent below the ten-year average.
This demand-supply imbalance is pushing prices upward in virtually all Saskatchewan cities. And you’d think this should trigger a blitz of new home construction but builders are more inclined to construct rental properties rather than units destined for home owners as government policies, bureaucracy and fees discourage increased home ownership, making homelessness more likely and impairing the average family’s ability to build wealth by owning a home rather than being trapped in the rental cycle.
