Saskatchewan home prices are seeing an upward pressure due to supply constraints.

Homes for sale in Weyburn, Estevan, and Swift Current, along with other smaller cities -- all reported year-over-year gains in March, according to a report by Saskatchewan Realtors Association (SRA).

The average benchmark of a home in Saskatchewan reached an all-time high of $374,100 last month, up from February’s $363,800.

“That record price that we’re seeing, at that benchmark record price, is primarily being driven by continued low supply in pretty much every market across the province,” explained Tyler Hudy, VP of public affairs and communications of SRA.

With a shortage of residences for sale across the province, Hudy said houses are continuing to sell for far above their initial asking price.

“In communities like Estevan, Weyburn, Swift Current, Melville, Yorkton, we’re seeing double digit benchmark price increases,” he said.

“Anywhere from 10 to 15 per cent increases in benchmark pricing. That trend has been consistent over the last number of months and it looks like that trend is going to continue as we enter into spring.”

Weyburn is one of many markets experiencing low inventory. Yet, it’s benefitting from the upward pressure on the market.

“We’ve seen a strong market, mostly stable,” said Erik Anderson, broker and owner of Century 21 Hometown.

Anderson said homes continue to sell fast and for higher prices than usual in the southeastern city.

“We’re still sitting at about a $250,000 average price for a house in Weyburn but, the better quality homes - between about $300,000 and $450,000 - have started to see, in the last five years, an upward push on their market value,” Anderson said.

“Those houses, like your family houses that are finished and done, they sell very quickly and they’re selling at better prices than they ever have.”

Demand for more homes

Although the spring market could possibly reduce the increasing pressure of higher home prices, inventory for housing remains “below historical norms”, with supply levels more than 50 per cent below normal levels for this time of year.

“That pressure is being predominantly felt in Regina and Saskatoon, but we have jurisdictions in Saskatchewan who have a month or maybe more of supply which means if no new homes go on the market in 32 days, there are going to be no homes,” Hudy said.

Supports for housing have been announced by the federal government, but Hudy stressed that new housing supply is needed for Saskatchewan specifically on top of local initiatives.

“At the federal level we did see a signal last week with that $1.7 billion coming down to provinces to help increase supply, which signals that they do understand that there is a supply shortage,” he said.

“But when you contrast what’s happening in Saskatchewan to other markets, we are still seeing the demand for houses. We just don’t have the supply and that is a very big contradiction to what we’re seeing in Ontario or what we’re seeing in British Columbia, where the demand also isn’t there, which is dropping the prices.”