Kingston and Area Statistics Ending May 2016

Kingston and area real estate statistics has been very positive news so far this year.  As of the end of May 2016 we have seen a 4% increase in price.  This makes the average selling price of a home just over  $301,000.  AvgSellPriceMay2016

So far this year we have seen strong residential home sales for the first 4 months over last year.  This slowed down a bit for May which is still strong since residential home sales for May of last year was 18% over 2014.   This strong start helped bring down the inventory of homes by about 7.5% from last year at this time.  Some may recall that it was a little difficult to sell a home last year due to the volume of homes on the market and not enough buyers.  This made it a buyers market for 2015.   So 2016 is returning to a more balanced market with just 4.9 months of inventory on hand.  (The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.)

The value of all home sales was a record $145.6 million in May 2016, an increase of 17.6 per cent from a year earlier. This was the first time volumes had ever surpassed $140 million in any month.

 

 

 

Kingston and area home sales ending 3rd Quarter 2015

When we look at the sales information for the first three quarters of 2014 vs 2015, Kingston saw an increase in single family home sales of 7.7%. This is considerably better than last year which saw a decrease over 2013 sales of nearly 6%. We don’t see this changing much by years end.

There were 553 new residential listings on the Association’s MLS® System in October 2015, down 5.5 per cent from the record October last year. However, this was still the second highest October level ever. Active residential listings on the Association’s MLS® System numbered 1,899 units at the end of October, down 10.5 per cent from the end of October 2014. There were 7.8 months of inventory at the end of October 2015, down from 8.5 months at the end of October 2014 and below the long-run average for this time of the year. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.

The sales-to-new-listings ratio continues to be around the 37%. Effectively, what this means is that for every 3 houses which are put onto the market, only one sells. This is important to understand when listing your home.

Kingston’s average selling price of $290,580 saw a nice increase of 5.7% over the same period as last year. This increase is not seen as prices taking off but more so of a weakness of the prices in the 4th quarter of 2014.

Mortgage rates continue on the downward slope. As of October 21st, 2015, the advertised five-year lending rate stood at 4.64 per cent, unchanged from the previous Bank rate announcement on September 9th, and down 0.15 percentage points from one year ago. The next interest rate announcement will be on December 2nd, 2015, while the next update to the Monetary Policy Report will be On January 20th 2016. It is unknown what effect the introduction of the new Liberal government will be on these rates.

Employment and unemployment figures remained pretty steady. All these factors are great news for the Kingston housing market. It is forecasted that Ontario home sales over the next couple of years will be stable. This could change if we see increases in the mortgage rates.

New Home Sales
The price of buying a new home has been steadily increasing. The average price in the Kingston area for a single family home is $323k vs. 2010 when we saw the average price of $277k. New home starts have been steadily decreasing since a boom in 2003. The Kingston area saw a high of almost 900 new units started in 2003. Comparatively, 2014 saw 462 starts, and as of the end of October 2015 we are at 257 starts, a drop of 28% over the same period as last year.

Kingston and Area home sales pop up in August

Aug2015StatsHome sales recorded through the MLS® System of the Kingston and Area Real Estate Association posted a double digit year-over-year increase in August 2015.

Residential property sales numbered 297 units in August, up 13.4 per cent from the same month a year earlier. On a year-to-date basis home sales are currently running almost seven per cent ahead of the first eight months of 2014.

“August was an above average month for home sales in the Kingston area, not record breaking but an improvement from earlier this year,” said Jack Green, President of the Kingston and Area Real Estate Association. “Meanwhile, the average sales price this year is running more than three per cent ahead of 2014.”

The average price for homes sold through the Association’s MLS® System in August 2015 was $280,234, up 6.4 per cent from August 2014. The less volatile year-to-date average sale price was $294,338, an increase of 3.1 per cent from the first eight months of 2014.

There were 725 new residential listings on the Association’s MLS® System in August 2015, down 9.9 per cent on a year-over-year basis.

Active residential listings on the Association’s MLS® System numbered 2,204 units at the end of August, down 6.8 per cent from the end of August 2014.

There were 7.4 months of inventory at the end of August 2015, down from nine months at the end of August 2014 and on par with the long-run average for this time of the year. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.

The value of all home sales was $83.2 million in August 2015, an increase of 20.6 per cent from a year earlier. This was the highest August on record.

Sales of all types of properties numbered 335 units in August, climbing 12.4 per cent on a year-over-year basis. The total value of all property sales jumped 25.6 per cent from a year earlier to $95 million in August.


Have you heard about the Municipal Land Transfer Tax?

Currently, as a home buyer you will pay a Provincial Land Transfer Tax.  This adds thousands to the home purchase.  This may change in the future if the province grants Municipalities the authority to collect additional tax revenues by way of a Municipal Land Transfer Tax.  Toronto buyers currently pay a Provincial and a Municipal Land Transfer Tax adding an average of $12,000 to the home purchase.  Keep in mind that the tax is based on a percentage of the purchase price.   The same calculation done for a $300,000 home in Kingston would be approximately $2,975 for the Provincial Land Transfer Tax and then and additional $2,720 for the Municipal Land Transfer Tax (assuming the same percentage rate as Toronto is charged)

The spread of the Municipal Land Transfer Tax throughout the province threatens to increase the total cost of home ownership.  The additional tax dollars is for the benefit for all citizens and to fund all municipal services, not just home buyers.  This additional tax burden on Buyers will have a trickle down affect on consumer spending.

OREA Position
Ontario REALTORS® oppose the municipal LTT. Simply put, the tax is fundamentally unfair, bad for the economy and is an unreliable source of local revenue that has implications for provincial tax revenue.”

The good news is that when the candidates for the recent municipal election (Kingston, Gananoque, Stone Mills Township, Napanee) were questioned whether they supported such a tax, an overwhelming number said no.  Time will tell whether this is true.  At the very least you will know more about this potential additional tax burden.

Don’t Tax My Dream with MLLT

 

 

 

Kingston and Area home sales, new listings rise in October

Home sales recorded through the MLS® System of the Kingston and Area Real Estate Association were up on a year-over-year basis in October 2014.

Residential property sales numbered 250 units in October, rising 16.3 per cent from the same month last year.

“The 250 homes that changed hands in October 2014 made for the strongest October sales figure for Kingston and surrounding areas in seven years,” said Liza Tallen, President of the Kingston and Area Real Estate Association. “At the same time, the amount of product on the market has risen sharply since the spring, and that appears to have put a lid on price increases for now.”

The average price for homes sold through the Association’s MLS® System in October 2014 was $270,161, down 4.4 per cent from October 2013. The less volatile year-to-date average price was $283,029, up 1.6 per cent from the first 10 months of 2013.

There were 585 new residential listings on the Association’s MLS® System in October 2014, an increase of 10.4 per cent on a year-over-year basis. This was a record for new supply in the month of October.

Overall supply has risen sharply in recent months following a dip at the start of the year. Active residential listings on the Association’s MLS® System numbered 2,122 units at the end of October, up 27.3 per cent from the same month in 2013. This was the highest level for this time of the year in more than 15 years.

There were 8.5 months of inventory at the end of October 2014, up from 7.8 months at the end of October 2013 and above the long-run average for this time of the year. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.

The value of all home sales was $67.5 million in October 2014, an increase of 11.1 per cent from a year earlier. This was a record for the month of October.

Sales of all types of properties numbered 286 units in October, up 18.2 per cent on a year-over-year basis. The total value of all property sales rose 16.0 per cent from a year earlier to $75.6 million in October.

 


The information contained in this report has been prepared by
The Canadian Real Estate Association, in co-operation with the Kingston and Area Real Estate Association.
The information has been drawn from sources deemed to be reliable, but the accuracy and completeness of the information is not guaranteed.
In providing this information, neither The Canadian Real Estate Association nor
the Kingston and Area Real Estate Association assumes any responsibility or liability.
Copyright © 2014 The Canadian Real Estate Association. All rights reserved. Reproduction in whole or in part is prohibited without written permission.

Kingston and Area home sales edge up year-over-year in September





Home sales recorded through the MLS® System of the Kingston and Area Real Estate Association was little changed on a year-over-year basis in September 2014.

Residential property sales numbered 251 units in September, edging p 1.6 per cent from the same month last year.

“September turned in another solid performance, with home sales running roughly in line with both the five and 10-year averages for the month,” said Liza Tallen, President of the Kingston and Area Real Estate Association. “The same cannot be said of supply, which has risen sharply just over the past five months. This has given buyers more of an advantage in negotiations and may be starting to put the brakes on price increases.”

The average price for homes sold through the Association’s MLS® System in September 2014 was $274,387, little changed (-$216) from September 2013. The year-to-date average price was $284,357, up 2.2 per cent from the first three quarters of 2013.

There were 719 new residential listings on the Association’s MLS® System in September 2014, jumping 26 per cent on a year-over-year basis. This was a record for new supply in the month of September.

Overall supply has risen sharply in recent months following a dip at the start of the year. Active residential listings on the Association’s MLS® System numbered 2,328 units at the end of September, up 29 per cent from the same month in 2013. It was also the highest level for this time of the year since 1997.

There were 9.3 months of inventory at the end of September 2014, up from 7.3 months at the end of September 2013 and above the long-run average for this time of the year. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.

The value of all home sales was $68.9 million in September 2014, an increase of 1.5 per cent from a year earlier.

Sales of all types of properties numbered 290 units in September, up 3.6 per cent on a year-over-year basis. The total value of all property sales rose 6.4 per cent from a year earlier to $78.3 million in September.

 


The information contained in this report has been prepared by
The Canadian Real Estate Association, in co-operation with the Kingston and Area Real Estate Association.
The information has been drawn from sources deemed to be reliable, but the accuracy and completeness of the information is not guaranteed.
In providing this information, neither The Canadian Real Estate Association nor
the Kingston and Area Real Estate Association assumes any responsibility or liability.
Copyright © 2014 The Canadian Real Estate Association. All rights reserved. Reproduction in whole or in part is prohibited without written permission.

Longer or shorter? Your amortization affects how much your mortgage really costs.

 

Shawn Kimber
RBC Mobile Mortgage Specialist
613-331-6556

 

Choosing the length of your amortization period, which means the number of years you will need to pay the full balance of your mortgage, is an important decision that can  affect how much interest you pay over the life of your mortgage.

Historically, the banking industry’s standard amortization period has been 25 years, a standard that still applies today. It is the benchmark that is used by most lenders when discussing mortgage offers.  However, shorter or longer time frames are available.

Why choose a shorter amortization period?
The main reason to opt for a shorter than standard amortization period is so that you become mortgage-free sooner. And since you are agreeing to pay off your mortgage in a shorter period of time, the interest you pay over the life of the mortgage is therefore greatly reduced.

You also have the advantage of building home equity sooner. Equity is the difference between any outstanding mortgage on your home and its market value. It represents the amount of money you can claim as your asset. If you choose, your equity can be used to secure lower interest cost financing for things such as home renovations, your children’s education or second property investments, just to name a few.

A shorter amortization period saves you money on interest.

While there are many good reasons to opt for a shorter amortization period, there are a couple of other factors to consider. Because you are reducing the actual number of mortgage payments you make to
pay off your mortgage, your regular payments will be higher.

So if your income is irregular, or if you’re buying a home for the first time and will be carrying a large mortgage, a shorter amortization period that increases your regular payment amount and ties up your cash flow may not be the best option for you.

But, if you can comfortably afford the higher payments and are looking to save money on your mortgage, or maybe you just don’t like the idea of carrying debt over a long period of time, perhaps you should consider a shorter amortization period. The following chart will help you see the differences between shorter and standard amortization periods.

Compare the difference*: Five-year fixed-rate closed mortgage

Why choose a longer amortization period?
Choosing a longer amortization period can get you into your dream home sooner than choosing a standard or shorter period. When you apply for a mortgage, lenders calculate the maximum regular payment you can afford. They then use that amount to calculate the maximum amount they will lend to you for your mortgage.

As a shorter amortization period results in higher regular payments, a longer amortization period reduces the amount of your regular principal and interest payment by spreading your payments over a longer period of time. So you could qualify for a higher mortgage amount than you originally anticipated. Or you could qualify for your mortgage sooner than you had planned. Either way, you end up in your dream home sooner than you thought possible.

Get your dream home sooner with a longer amortization. Regular payments are less with a longer amortization.

Again, this option is not for everyone. While a longer amortization period will appeal to many people because the regular mortgage payments can be comparable or even lower than paying rent, it does mean that more interest will be paid over the life of the mortgage. The chart below will help you to see differences between longer and standard amortization periods.

Compare the difference* : Five-year fixed-rate closed mortgage

You have the flexibility to shorten your amortization period. Regardless of which amortization period you select when you originally apply for your mortgage, it does not mean you have to stay with that period throughout the life of your mortgage. You can always choose to shorten the amortization period and save on interest costs by choosing an accelerated payment option, making extra payments when you can, such as a Double Up®** or an annual lump sum principal prepayment.

You should review your options at each renewal to shorten your amortization and pay off your mortgage faster.

It also makes good financial sense for clients to re-evaluate their amortization strategy every time their mortgage comes up for renewal. Then, as you advance in your career and begin to earn a better salary over time, you can simply increase the amount of your regular payments by as much as 10% once each year. All these prepayment features will take years off your amortization period, and save you money on interest.

Compare Interest Costs

 

 

 

 

 

 

 

For more information about mortgages, speak to Shawn Kimber, an RBC Mobile Mortgage Specialist

 

Kingston and Area home sales remain solid in July

Home sales recorded through the MLS® System of the Kingston and Area Real Estate Association numbered 334 units in July, down five per cent from a year earlier.

“Home sales in July were down slightly from strong levels in the same month last year, but came in above the five-year average for the month and right in line with the 10-year average,” said Liza Tallen, President of the Kingston and Area Real Estate Association. “The real story though is that following a pretty quiet start to the year the buyers were back in June and that trend continued in July.”

The average price for homes sold through the Association’s MLS® System in July 2014 was $284,282, an increase of four per cent from July 2013.

There were 768 new residential listings on the Association’s MLS® System in July 2014, rising 12 per cent on a year-over-year basis. This was a record for new supply in the month of July.

Overall supply has risen sharply in recent months. Active residential listings on the Association’s MLS® System numbered 2,312 units at the end of July, up 17 per cent from the same month in 2013.

There were 6.9 months of inventory at the end of July 2014, up from 5.6 months at the end of July 2013 and above the long-run average for this time of the year. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.

The value of all home sales was $95 million in July 2014, edging down one per cent from a year earlier.

Sales of all types of properties numbered 373 units in July, down three per cent on a year-over-year basis. The total value of all property sales increased two per cent from a year earlier to $104.6 million in July.

 


The information contained in this report has been prepared by
The Canadian Real Estate Association, in co-operation with the Kingston and Area Real Estate Association.
The information has been drawn from sources deemed to be reliable, but the accuracy and completeness of the information is not guaranteed.
In providing this information, neither The Canadian Real Estate Association nor
the Kingston and Area Real Estate Association assumes any responsibility or liability.
Copyright © 2014 The Canadian Real Estate Association. All rights reserved. Reproduction in whole or in part is prohibited without written permission.

 

Bank of Canada signals low rates for longer

Cdn Mortgage Rates

The Bank of Canada announced on July 16th, 2014 that it was keeping its trend-setting overnight lending rate at 1 per cent.

 

The overnight rate has not moved in almost four years, and the Bank’s July announcement and accompanying Monetary Policy Report (MPR) suggest the most likely scenario right now is that the overnight rate will remain parked where it is for at least another year and a half.

 

That said, the Bank made clear that it was “neutral” with respect to not only the timing but also the direction of any future change to the policy rate. The Bank is taking a wait and see approach at this point, saying that any future moves “will depend on how new information influences the outlook and assessment of risks.”

 

With inflation having “moved up to the 2 per cent target in recent months, sooner than expected,” talk of a rate cut has all but gone away; however, the Bank attributes the recent rise in inflation to temporary effects, specifically higher energy prices, a lower Canadian dollar, and other sector-specific shocks rather than to any change in domestic economic fundamentals.

 

As such, headline inflation is expected to continue to bounce around in the 2 per cent range over the next two years, while under the surface there will be a symmetrical unwinding as the temporary effects currently pushing it up gradually fade away and the economic fundamentals currently holding it down, namely slack in the economy and elevated retail competition, also become less of a factor.

 

The Bank noted that global economic growth has been on a lower track than was forecast in the April MPR, and the forecast for global growth has been lowered accordingly, specifically this year but also for next year. The forecast for Canadian economic growth has likewise been trimmed from the 2 ½ per cent range this year and next to 2 ¼ per cent on average this year and next and into 2016 as well.

 

As a result, the economy is now not expected to get back to full capacity until mid-2016 compared to the April MPR’s prediction of early 2016. As such, bets on when the first interest rate hike could come will likely be pushed from mid-2015 to later in the year and possibly even into early 2016. The bottom line is, once again, interest rates will be lower for longer.

 

The Bank still expects that “the lower Canadian dollar and a projected strengthening in global demand will lead to a pickup in Canadian exports and business investment and, eventually, a more sustainable growth track,” although this may take a little longer than expected to materialize with the Canadian dollar having recently popped back up a bit and the forecast for global growth, and particularly growth in the U.S., having been downgraded.

 

The Bank also re-iterated that “household imbalances continue to evolve constructively and recent data are broadly consistent with a soft landing in Canada’s housing market.”

 

As of July 16th, 2014, the advertised five-year lending rate stood at 4.79 per cent, unchanged from the previous Bank rate announcement on June 4th, 2014 and down 0.35 percentage points from the same time one year ago.

 

The next interest rate announcement will be on September 3rd, 2014.

 

(CREA 7/16/2014)

Kingston and Area home sales up in June

Kingston June Residential Sales Activity

Home sales recorded through the MLS® System of the Kingston and Area Real Estate Association numbered 385 units in June, up 18 per cent from a year earlier.

“Following a quiet April and May, home sales picked up noticeably in June,” said Liza Tallen, President of the Kingston and Area Real Estate Association. “Meanwhile, new listings posted a second straight double-digit year-over-year increase, giving prospective buyers more options compared to just a few months ago.”

The average price for homes sold through the Association’s MLS® System in June 2014 was $287,738, an increase of 1.7 per cent from June 2013.

There were 832 new residential listings on the Association’s MLS® System in June 2014, rising 17 per cent on a year-over-year basis. This was a record for new supply in the month of June.

Overall supply has risen sharply in recent months. Active residential listings on the Association’s MLS® System numbered 2,344 units at the end of June, up 15 per cent from the same month in 2013 and a 16-year high for active supply at this time of the year.

There were 6.1 months of inventory at the end of June 2014, little changed from 6.3 months at the end of June 2013 and slightly below the long-run average for this time of the year. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.

The value of all home sales was $110.8 million in June 2014, up 20 per cent from a year earlier.

Sales of all types of properties numbered 415 units in June, up 12 per cent on a year-over-year basis. The total value of all property sales increased 15 per cent from a year earlier to $117.1 million in June.


The information contained in this report has been prepared by
The Canadian Real Estate Association, in co-operation with the Kingston and Area Real Estate Association.
The information has been drawn from sources deemed to be reliable, but the accuracy and completeness of the information is not guaranteed.
In providing this information, neither The Canadian Real Estate Association nor
the Kingston and Area Real Estate Association assumes any responsibility or liability.
Copyright © 2014 The Canadian Real Estate Association. All rights reserved. Reproduction in whole or in part is prohibited without written permission.