Those in the residential real estate market these days are finding a tale of two cities. On one side, builders and those trying to sell properties are feeling the pinch of excess inventory and price pressure. On the other side, buyers are in charge with plenty to pick from, easing interest rates and motivated sellers.
We’ve been battling this market for a couple years now, but there are signs that the bottom is near, if not behind us.
One sign comes from CMHC. It shows new inventory continuing to grow. In April, there were 363 new units completed. Last year in the same month it was 450. So, builders are reducing their output. New starts this year are also down compared to a year ago, so the inventory will begin to recede.
And we’re seeing it in pricing too. A report on the cost of building a new home in Regina did not change last month, while in Saskatoon it fell one-tenth of point. This also suggests the market is starting to find some stability.