In Saskatchewan, low supply is the true driver of record prices — not demand alone

In Saskatoon, if no new homes come to market, there will be none left to buy within two months. That reality is reshaping how first-time buyers enter the market, as inventory sits 50% below normal levels and competition drives prices to record highs. The provincial benchmark price rose to $374,100 last month, with Saskatoon’s average reaching $435,200 — an all-time high. Regina followed at $343,700. These figures reflect not just demand, but a supply vacuum. With less than a two-month supply of homes, the market is technically in a state of exhaustion. Sellers hold all leverage. Some homes sell within hours. The average overbid in Saskatoon now ranges between $34,000 and $36,000. One agent reported offers as high as $120,000 above asking. Buyers who can’t or won’t overpay are turning to other tactics: submitting bank pre-approvals, matching the seller’s preferred closing date, increasing their deposit, or writing personal letters explaining why they want the home. Patrick Arno, a first-time buyer, said finding a home felt like searching for a needle in a haystack. He and his wife wanted an open-concept house with space for their dog, a garage, and potential for a basement suite. They compromised, stayed patient, and after two months, closed on a home for $10,000 below asking price. Most aren’t that lucky.