The Saskatoon and Region Housing Market report shows quarter one housing starts were down a bit Executive Director of the Saskatoon and Region Home Builders Association says it is less about demand because resale inventory is at a record low and resale prices continues to rise.

Nicole Burgess says, “And really closing that gap that existed for quite a while with new builds. Seeing new construction is becoming an increasingly important option for buyers. So, our housing start numbers while down slightly are very strong and we’re seeing continued demand.”

She says this an excellent time to be a first-time home buyer. Burgess points to great incentives federally and provincially such as the GST being removed for new construction for first time home buyers up to a million dollars.

” In Saskatchewan our government came forward with their permanent PST rebate program again helps that kind of entry level home that a lot of first-time home buyers are looking to get into. And then also at the federal level we saw that move towards 30-year amortization period another key element when it comes to financing mortgages. And then in Saskatchewan we also have that secondary suite incentive.

Burgess points to construction costs which continue to be a pain point with ongoing increases in materials and labour.

“We’re seeing buyers going to the market for housing they’re just not finding what they’re wanting for their family’s needs necessarily on the resale market and that’s where new construction is really playing a critical role. We have kind of this pent-up demand due to a number of years of population growth that we’ve seen in Saskatoon and across our region.”