Saskatoon has seen a dramatic decline in its total housing starts, totalling a slide of 59% from 376 in January 2014, creating only 155 the same time this year.
The latest report from Canada Mortgage and Housing Corp also showed starts for multiple units went down 69% to 96 from 308 last year as well.
“Following a strong performance for housing starts last year, builders will be keen to ensure that demand from new home buyers in 2015 is first channelled toward their complete and unsold inventory,” said Goodson Mwale, CMHC's senior market analyst for Saskatchewan.
In Regina alone, total housing starts dropped 13% to 97 in January from 111 during the same period last year. Single-family starts dipped 26% to 42 last month from 57 in January 2014.
Despite the decline, Regina’s multiple-unit starts were slightly ahead of last year rate – climbing from 54 to 55 this year.
“When you have all this economic news coming out regarding energy prices and the lower Canadian dollar, there is economic uncertainty in the marketplace,” Mwale said.
"When there is economic uncertainty, people will want to approach (home buying) cautiously. Job security is another thing. You need a job to carry a mortgage.”
The report said moderation in housing starts shall commence in 2015 with 3,085 units for Saskatoon. Next year, the area is expected to see another 3,015.
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