Bank rate cut could mean more demand for homes in Saskatchewan

The Bank of Canada’s recent interest rate cut may make it harder to find a home in Saskatchewan.

Appearing on The Evan Bray show on Monday, Chris Guérette, CEO of the Saskatchewan Realtors Association, said the Bank of Canada’s decision to lower of its key interest rate from five per cent to 4.75 per cent means more people will be interested in purchasing, which could make it harder for buyers to find exactly what they want.

“It’s going to require a lot of patience,” said Guérette.

She described the Saskatchewan market as “very resilient,” with very steady growth.

“Saskatchewan is really a place where the market is really strong here, but it will require a lot of patience,” she said.

Listen to the full interview with Chris Guérette:

“It’s a very tough market, meaning you have to move very quickly when you see something and there’s not a lot out there.”

Guérette said more people will be out looking for homes thanks to the rate cut, including people who were previously on the sidelines waiting for things to improve.

“We’re probably going to see more traffic, more buyers,” said Guérette.

But on the flip side is the province’s low housing supply in the province. The Saskatchewan Realtors Association has reported strong home sales, but low inventory in recent months. That low supply, combined with more people in the market, could pose a challenge for those trying to find a home that fits their needs.

“Saskatoon and Regina are still two of the (census metropolitan areas) in our country that are still experiencing very tight inventory situations,” said Guérette. “Our months of supply are sitting at around 1.5 months.”

Guérette noted that in other large centres there were reports that supply was starting to reach a “more comfortable” level.

“We’re not seeing that here in Saskatchewan yet,” she said.

The situation has led to some reports of bidding wars for some homes in Saskatchewan’s cities.

“We’ve heard about them in Regina and Saskatoon,” said Guérette.

As to what to expect for the rest of the year, Guérette said association members expect demand to be higher than supply. She expects a busy summer, and a busy third and fourth quarter of this year.

“We’ll be monitoring as usual the months of supply, making sure it doesn’t put too much pressure on pricing,” she said.