The Regina housing market saw slow sales activity at the peak of COVID-19 lockdowns in March. While activity picked up by June, the number of listings were still down, creating high demand from local buyers. The market saw an uptick in multiple offer scenarios, and this is expected to continue into fall.
The average sales price and transactions are back to the levels that the region saw during this time in 2019. Regina’s luxury housing market remains unaffected by the pandemic as this sector is also seeing similar levels to 2019.
Buyers in the region are optimistic about the market and prices are expected to remain stable, with a 2% increase for all property types expected in Regina, Saskatchewan for the remainder of the year.
While COVID-19 lockdowns in March and April slowed down the housing market in Western Canada, transactions in Kelowna, Saskatoon and Vancouver resumed by May, with sales in both May and June surpassing year-over-year levels. Many buyers put their plans on hold at the peak of COVID-19 lockdowns, but they returned to the market quickly to make up for lost time. Edmonton’s housing market quickly bounced back to pre-COVID levels in June, while Saskatoon experienced its busiest June in years; this momentum is anticipated to continue into the fall market, with RE/MAX brokers and agents estimating a three-per-cent increase in average residential sale prices for the remainder of the year. Overall, brokers and agents in Western Canada say the potential buyers they are talking to are not too concerned with a potential second wave of COVID-19 impacting their real estate journey, and RE/MAX brokers are estimating steady activity to round out 2020.
Leading indicators from RE/MAX brokers and agents across Canada’s housing market point to a strong market for the remainder of 2020. According to the RE/MAX Fall Market Outlook Report, RE/MAX brokers suggest that the average residential sale price in Canada could increase by 4.6% during the remainder of the year. This is compared to the 3.7% increase that was predicted in late 2019.
The pandemic has prompted many Canadians to reassess their living situations. According to a survey conducted by Leger on behalf of RE/MAX Canada, 32% of Canadians no longer want to live in large urban centres, and instead would opt for rural or suburban communities. This trend is stronger among Canadians under the age of 55 than those in the 55+ age group.
Not only are Canadians more motivated to leave cities, but changes in work and life dynamics have also shifted their needs and wants for their homes. According to the survey, 44% of Canadians would like a home with more space for personal amenities, such as a pool, balcony or a large yard.
Canadians equally split on their confidence in the housing market
Canadians are almost equally split in their confidence in Canada’s real estate market, with 39% as confident as they were prior to the pandemic, and 37% slightly less confident. When it comes to the prospect of a second wave of COVID-19, 56% of Canadians who are feeling confident in Canada’s real estate market are still likely to buy or sell.
“While COVID-19 lockdowns slowed Canada’s housing market at the start of a typically busy spring market, activity bounced back by early summer in many regions, including Vancouver and Toronto,” says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. “Despite the tragic impacts of the pandemic, our optimism in the strength of Canada’s housing market has always remained, and current market activity further exemplifies this. Many homebuyers are now exploring different neighbourhoods that better suit their new lifestyles, and real estate agents are getting busier and working more with buyers from different major cities. According to our brokers and agents across the RE/MAX network, Canada’s fall market is expected to see spring market-like activity.”
Additional highlights from the 2020 RE/MAX Fall Market Outlook Report Survey:
48% of Canadians would like to live closer to green spaces
48% of Canadians say it’s more important than ever to live in a community close to hospitals and clinics
33% of Canadians would like more square footage in their home and have realized they need more space
44% of Canadians want a home with more outdoor space and personal amenities (i.e. balcony, pool etc.)
About the 2020 RE/MAX Fall Market Outlook Report
The 2020 RE/MAX Fall Market Outlook Report includes data and insights supplied by RE/MAX brokerages. RE/MAX brokers and agents are surveyed on market activity and local developments.
The Regina housing market is currently balanced which is expected to continue into 2020. The RE/MAX average residential sale price expectation for Regina is +1-2% due to an increase in sales and less listings on the market. If this continues into 2020, prices should adjust slightly upwards.
Currently there are 7.7 months worth of inventory left, as we move into spring 2020 this will reduce slightly. The mortgage stress test has made buyers more cautious about home ownership.
First-time home buyers are most interested in the popular property type, which is single detached homes, while retirees drive the condo market and are interested in townhouses with two or more bedrooms.
Move-up and first-time home buyers are expected to continue to drive demand in 2020 and there has been a slight increase in the luxury sales year over year, which is likely to continue in 2020.
From a national perspective, RE/MAX anticipates a leveling out of the highs and lows that characterized the Canadian housing market in 2019, particularly in Vancouver and Toronto, as we move into 2020. Healthy price increases are expected, with an estimated 3.7-per-cent increase in the average national residential sales price.
As more Canadians have adjusted to the mortgage stress test and older Millennials move into their peak earning years, it is anticipated that they will drive the market in 2020, particularly single Millennials and young couples. A recent Leger survey conducted by RE/MAX found that more than half (51 per cent) of Canadians are considering buying a property in the next five years, especially those under the age of 45.
RE/MAX of Western Canada
Kayley Jackson is an English & Creative Writing graduate, as well as writer and photographer whose love for words and creativity brought her to RE/MAX. As Communications Coordinator at RE/MAX of Western Canada, Kayley creates and oversees content that appeals to buyers and sellers alike, aiming to assist them on their homebuying or selling journey. Kayley carries out public relations, communications and social media content for RE/MAX, which includes creating content and writing for the consumer-facing blog at remax.ca. When she’s not behind the lens of her camera or writing away at her desk, Kayley can be found enjoying the Okanagan lifestyle in Kelowna, BC, where she lives with her fiancé, or daydreaming about where her next travel adventure will take her. Email Kayley at firstname.lastname@example.org.