In Saskatchewan, seller’s market has homebuyers lining up for shrinking inventory of properties

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Homebuyers are getting “shut out” from buying their first property across much of Saskatchewan as listings continue to lag compared to interest.

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Sales in the prairie province were down by 10 per cent in May compared to last year, but market watchers said the drop was due to a lack of supply.

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Saskatchewan, which still has some of the most affordable homes in the country, posted record high prices as bidding wars picked up.

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The trend is bucking trends in big cities in other provinces where sales are sluggish with cautious consumers refraining from jumping in during a period of high energy costs.

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Petro Skirchuk, a real estate agent for Realty Executives Saskatoon, said intense competition means that his clients are putting in around six bids on homes before getting accepted. He’s holding almost five times more viewings compared to when he started three years ago.

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“I’m showing, right now, 50 houses in order for these clients to have (their) offer accepted. Three years ago, it was 10 to 15 houses, so it takes more time, way more time,” he said.

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In April, sales were muted across many Canadian cities, with forecasts it could stay that way into the summer.

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So far, the data suggests another mixed bag for housing markets in May, with nearby Calgary reporting sales were down by 16 per cent while residential prices fell three per cent to $570,500. In the Greater Toronto Area, meanwhile, the over supply of listings led to prices falling and more buyers taking advantage of the scales balancing out.

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In Saskatchewan, the challenge to homeownership isn’t actually the down payment, said Chris Guérette, chief executive of the province’s realtors association.

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Instead, the hot housing market is leading to slim availability paired with intense competition between buyers vying for the same properties, prolonging the process.

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“When we say we’re shut out of the market, it’s not because of a price point per se, but it’s because it takes so much time to shop for a home and to find something,” said the head of the licensed real estate professionals body.

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“It requires a whole other level of patience.”

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The association’s latest market note flagged “mounting supply pressures” as demand continued to outpace available inventory for May.

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Once listings go up, they are often snatched up quickly by eager buyers. Home sellers, on the other hand, are hesitant to list if they haven’t yet lined up where they will be moving to.

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It’s creating a “bottleneck” effect, said Saskatoon realtor Jenna Schmid, who works for Century 21 Fusion.

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“Most buyers that I’m talking to, because inventory is low … they’re nervous to list their property until they’ve found something to buy,” said Schmid.

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It’s a seller’s market across the province, which is especially prominent in Saskatoon, and it puts stress on buyers.