Many factors have converged to impact Regina’s record-breaking real estate market, factors like a healthy economy that is projected to grow by 2.5 percent in 2007, major infrastructure improvements, solid job creation coupled with a record low unemployment rate, modest population increases and substantial residential and commercial development. This progressive city is seeing vacant and rundown buildings marked for demolition, businesses renovating and expanding their premises, more and more businesses entering the market and support from all levels of government to retain and expand their offices in the downtown core. Highlights of this include:

• A new $19 million Saskatchewan Transportation Company bus depot and head office that is under construction on land acquired across the street from the Regina City Police Station with completion slated for fall 2007.
• The Regina Airport’s recent completion of a $15 million improvement program that included a larger air terminal building and upgrades to passenger screening and boarding areas.
• Retail hotspots like the southeast area of the city that are seeing the construction of a new Canadian Tire, Winners/HomeSense, Petsmart, Mark’s Work Wearhouse and several restaurants.
• The northwest area that is considered another retail hotspot with a new Home Depot and credit union with three other satellite buildings under construction.
• Residential development that is on the rise in these areas and others throughout the city.

Perhaps the most interesting trend is the aggressive acquisition of commercial and residential properties by Real Estate Investment Trusts (REITs). Regina’s record growth over the past few years has caught the eye of Canadian and U.S. REITs, which in the past year have snapped up and swapped over $75 million worth of office, retail and apartment properties. In fact, Regina is considered one of the hottest investment-grade commercial real estate markets in Canada. For instance, a seniors housing REIT undertook a $14.5 million conversion project that saw two floors added to a former five-storey office building to create a 100,000 square foot European style residential building.

The most impressive numbers though are coming out of the residential real estate market, which is literally breaking records at every turn.

• In February 2007, 250 homes sold representing a 28.9 percent increase over 2006 and a 20 year high.
• A total dollar volume of $33 million in February 2007 hit an all time high, up 38.3 percent over the previous high posted in 2006.
• Year-to-date home sales through MLS were up 27.3 percent over 2006, with sales dollar volumes reaching an all time high of $53.5 million, up 26.8 percent over last year.
• Regina has experienced the second highest number of homes sold in the past 10 years.
• Prices have strengthened by 7.3 percent from one year ago and are now at an all time high, representing the strongest increase in over 20 years.
• MLS listings are down by 23.4 percent in February 2007 over last year.
• The vacancy rate in the southwest region, where Wascana Town Homes is located, is the lowest in the city at 1.2 percent in October 2006 according to CMHC.
• Regina’s 3.3 percent vacancy rate in October 2006 is projected to decline to 3.0 percent in 2007 due primarily to employment gains and in-migration, which will in turn put pressure on rental demand.
• Three bedroom plus properties in the southwest region that were built between 1960 and 1974 are at zero percent vacancy.
• Rental rates in the southwest region are the second highest in the city behind downtown Regina.

This highly active market is experiencing unprecedented demand and tight supply, which should continue to put upward pressure on prices. Many properties are selling faster than usual and above list price because of multiple bids. This increased pressure on prices causes new home purchasers to postpone entry into the market, which bodes well for Regina’s rental market; and as the University of Regina continues to expand, the Regina Research Park approaches completion, Regina’s economy continues to heat up rental demand for Wascana Town Homes will surely follow suit.