Low inventory and rising costs are fuelling a housing crisis for would-be homeowners
Buying a home in Saskatoon has never been more expensive, as housing prices continue to climb and inventory plummets to levels not seen since 2008.
All major property types (including detached homes, apartments, and townhouses) reached record-high prices in March, according to local real estate experts.
Prices have been rising by roughly $5,000 per month over the past year, with the Home Price Index benchmark showing property values up nearly 8% compared to March 2024. Over a five-year period, prices have surged 37%, and compared to two decades ago, values have skyrocketed by 218%.
"If no new homes were listed for the next month, there would be no inventory left within a month," real estate analyst Josh Buchanan told CBC News. He noted that the shortage is leading to fierce competition, driving homes to sell for $30,000 to $100,000 above asking prices.
Almost 70% of homes sold in Saskatoon this month went for at or above the asking price, according to real estate data. Buchanan said the pace is pricing out many first-time buyers, forcing them to abandon their search altogether.
"Even if they could afford to get into the market, they're just getting outbid," Buchanan said.
First-time buyers struggle to compete
For young buyers like 25-year-old Abdullah Abrar, the experience has been frustrating. Abrar moved to Saskatoon with his family a few years ago and has been house hunting with a $500,000 budget since last summer, so far without success.
"It's frustrating because we're renting at the moment," Abrar said. "Most new homes won't be ready this summer, and what’s on the market is overpriced."
Abrar described the pressure of needing to act quickly, sometimes within a single day, on homes that rapidly escalate in price. One house he viewed in Brighton last year listed for $420,000; it’s now priced at $470,000.
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"You're spending half a million dollars, you're in it for the next 20 years or so. It's frustrating—you have to be quick on your decision, and it could turn out good or it could turn out bad," he said.
Abrar is currently helping his family with their purchase but dreams of eventually buying his own home in Saskatoon, though that goal is beginning to feel out of reach.
Rising rents
The strain in the housing market is also spilling over into the rental sector. Inesh Rai, a Saskatoon realtor, said many renters hoping to transition into homeownership are getting squeezed out of the market.
"They're losing on multiple offers, and it’s forcing them to continue renting," Rai said. "That's increasing demand in the rental market, and rents are going up because more people are giving up on buying."
Rai, who grew up in Prince Albert after moving from Ontario with his family, worries that Saskatchewan's traditional affordability advantage may be fading.
"I'm terrified that affordability is going away," he said. "When my family and I first moved to Canada, there was no chance in hell we could buy a house in Ontario. Saskatchewan gave us that opportunity. I'm worried future families might not have the same chance."
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