Moose Jaw Homes Sales Show Slight Softening In July As Interest Rates Take A Jump

With the Bank of Canada increasing the key overnight interest (Prime) rate by one percent in mid-July to combat inflation which is running at eight percent nationally the Moose Jaw housing market took a bit of a cooling in July.

That’s according to the July sales figures released by the Saskatchewan Realtors Association.

“As expected, gains in lending rates are having some cooling impacts on the housing market causing consumers to seek out more affordable options. The challenge will be product availability in the lower price ranges of the market,” s Chris Guérette, CEO of Saskatchewan REALTORS® Association said in a statement.

July, typically a hotter sales month as people buy new homes to occupy before the start of the school year, saw an uncharacteristic drop in sales but at the same time there was a decrease in the average home value from July 2021.

The July 2022 market stats show there were 75 home sales in Moose Jaw which was a drop of nine percent from July 2021.

The average home price - which has been relatively stable in the 12 months prior - dropped to $222.265 in July 2022 or a five percent decrease compared to July 2021.

The five percent decrease in the average home price was a bit of a turnout into negative territory after May 2022 saw an average home price increase versus May 2021.

This compared to June 2022 where there were fewer homes sales than in June of the previous year. The total home sales in June were 89 which is a 14 percent drop from June 2021.

June also saw more homes put on the market, 149, which is a nine percent increase over June 2021.

The average selling price in June was $245,800 which is a 2.8 percent increase over June 2021.

The Saskatchewan Realtors’ Association stated house prices in Moose Jaw have been relatively stable while other communities in the province have seen major gains over the past year.

Another major component in the health of the economy which may effect home sales and prices is the availability of jobs.

At the present time there are a large number of unfilled jobs in Moose Jaw with the new sow processing plant and the new Brandt trailer manufacturing plant both needing hundreds of workers.

Figures released on August 5th by Statistics Canada show an unemployment rate of 4.8 percent in the Moose Jaw - Swift Current region in July 2022 which is a 2.4 percent drop from July 2021.