The Saskatoon and Region Home Builders’ Association says the pandemic caused labour disruptions and supply shortages resulting in a 6.9 per cent year-over-year drop in new housing across the province. At the same time though, there was an 8.2 per cent increase in the median price of a new single- family home. Renovation construction was in high demand in the fourth quarter of 2020 and the resale housing market was quite strong. The effect of the pandemic was to alter housing preferences. People began looking for lower-density, single-family neighbourhoods and a number of current renters sought to become home-owners.

The association says, while COVID reduced immigration to the province by about 53 per cent compared to 2019, the federal government has increased its immigration targets for 2021 and 2022. It’s expected this will return the numbers to pre-pandemic levels. Because demand exceeds supply, the small drop in immigration levels will only have a modest impact on overall housing demand.

As for interest rates, the association says the average rate for a 5-year fixed mortgage has continued to fall since Q3 which has helped to further stimulate housing demand.