Saskatoon Real Estate: 2024 Spotlight on Luxury

Saskatoon’s luxury market is off to a strong start heading into the traditionally busy spring market. Sales of high-end homes over $700,000 are up 57 per cent in the first two months of the year, with 22 homes changing hands between January 1 to February 29, up from 14 during the same period in 2023.

A healthy economy and an influx of new Canadians and out-of-province buyers have buoyed home-buying activity in Saskatoon.Net international immigration to the province was just short of 30,000 in the first three quarters of 2023, according to Statistics Canada Quarterly Demographic estimates, provinces and territories: Interactive Dashboard. The strong demand for housing, coupled with a shortage of available properties, is placing strong upward pressure on pricing. Multiple offers are already occurring at lower price points – $350,000 to $500,000 – and threatening to spill over into higher-price ranges.

Seventy-nine properties are currently listed for sale over $700,000, with 14 conditional offers pending. New home builders are trying to make up for time lost during the pandemic, when soaring construction and labour costs stymied homebuilding activity. Prices for new construction now start at $600,000 in Saskatoon, with pressure building on existing housing stock. The greatest demand exists at luxury’s lower price points, between $700,000 and $800,000 at present, although that could rise in coming months as more sales push through higher price points.

Affordability has been drawing buyers from other provinces and there has been a significant increase in young professionals working in oil and gas, mining, and technology. Many are buying properties with small acreage on the outskirts of town where prices are affordable.

Equity gains have also played a role, helping local buyers to move up to the next level, particularly those in their late 20s and early 30, who tend to stay in the same neighbourhoods where they grew up. Many are choosing to renovate the older character homes on large lot sizes. Infill is on the rise in many established communities as empty nesters make lateral moves, trading larger lot sizes for newer homes with all the bells and whistles. Baby boomers are selling homes in desirable enclaves such as Caswell Hill, River Heights, Mayfair, Buena Vista, Mt. Royal, North Park, and the original homes along the South Saskatchewan River, and moving to some of the newer condominiums in the centre of the city or across the river in Nutana. The trend toward multi-generational living has also contributed to the uptick in luxury sales, with immigration helping to prop up this segment.

With Saskatchewan’s commodity-based economy expected to rebound, demand for homes in Saskatoon’s luxury segment is forecast to accelerate in 2024. GDP growth in the province is expected to be the second highest in the country in 2024 at 1.3 per cent, following on the heels of Alberta, according to the 2023-24 Mid-Year Report by the Government of Saskatchewan.

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About the RE/MAX Network
As one of the leading global real estate franchisors, RE/MAX, LLC is a subsidiary of RE/MAX Holdings (NYSE: RMAX) with more than 140,000 agents in over 9,000 offices with a presence in more than 110 countries and territories. RE/MAX Canada refers to RE/MAX of Western Canada (1998), LLC, RE/MAX Ontario-Atlantic Canada, Inc., and RE/MAX Promotions, Inc., each of which are affiliates of RE/MAX, LLC. Nobody in the world sells more real estate than RE/MAX, as measured by residential transaction sides.

RE/MAX was founded in 1973 by Dave and Gail Liniger, with an innovative, entrepreneurial culture affording its agents and franchisees the flexibility to operate their businesses with great independence. RE/MAX agents have lived, worked and served in their local communities for decades, raising millions of dollars every year for Children’s Miracle Network Hospitals® and other charities. To learn more about RE/MAX, to search home listings or find an agent in your community, please visit remax.ca. For the latest news from RE/MAX Canada, please visit blog.remax.ca.

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