Kingston & Area – 2020 in Review

KAREA_Year End 2020
KAREA-UnitsSoldYearEnd 2020

What a crazy year for real estate. COVID certainly didn’t stop people from buying or selling. In fact we saw an 8% increase in sales over the previous year. I personally feel there were a few converging ideas. Some of them had to do with the trends which I addressed in Real Estate Trends 2020 but I also felt there was a large movement of single family investment properties. With record sale prices (15% over 2019) and with so much uncertainty with tenant rights during COVID, I think these types of investors are thinking its time to cash out while the going is good.

On the other side of the coin we are seeing multi-residential buildings flying off the table including places like Napanee and Gananoque. Toronto investors are swooping in and taking advantage of much lower pricing.

2020 was also the year we had a record number of house sales with multiple offers. My prediction is that 2021 will bring more of the same. Let’s hope I’m wrong!

Kingston & Area Real Estate Stats – Sept. 2020

As this year progresses, the real estate market remains unpredictable and crazy. As the COVID cases rise we may see a downward shift in sales activity this winter. I am personally seeing a bit of what I call “OFFER FATIGUE” from buyers. Some feeling a bit of hopelessness. Who would have thought it would be so hard to purchase a home.

But with so much economic turmoil, the question remains as to the effect this will have on the housing market in the coming months. There seems to be consensus that next year we will see a softening of the market. I’m not so certain this will happen in Kingston and Area as we continue to have a greater demand for single family homes, as well as a increasing portion of out-of-town cash buyers .

The impact of COVID-19 on the housing market is complex, and we believe it will lead to diverging price trends among regions and housing categories. The pandemic is affecting demand and supply of various market segments quite differently. It is cooling demand for and boosting supply of rentals in large urban areas. This, in turn, is reducing investor interest in condos. The pandemic is also altering the housing needs of many current owners who look for more spacious properties in less crowded settings. This is simultaneously shifting demand from condo apartments to single-detached homes and other low-rise categories, and increasing the supply of smaller condos in core urban areas. Work-from-home arrangements and the lesser appeal of big-city living (with reduced cultural and socializing opportunities during these times of social distancing) are increasingly driving buyers further away from downtown locations into suburbs, exurbs and even cottage country. We believe this trend will sustain strong demand in smaller markets, putting intense pressure on their housing stock. The bottom line is we expect condo prices to weaken in larger markets next year, while we see prices for single-detached homes remaining generally resilient—albeit increasing at a slower pace. “ RBC

There continues to be a good percentage of homes which are going for over asking price. More people are now offering greater amounts of money to get a home. Recently a house priced at $259,000, sold for $350,000. It had 17 offers. The question is was this house actually only worth $259k or $350k to begin with?

 

AmtOverAsking

Year to date we have seen a 14% increase over same period last year for the Kingston & Area market. September sales were higher and as you can see the days on market was significantly less for the month of September.

Let’s hope for a slower winter for us all!

MoreCities_Sept
KAREA Sept 2020 Real Estate Stats

Kingston & Area Real Estate Stats – August 2020

Despite being in the middle of a pandemic, Canada housing market shattered records in July.  What the fall brings to the housing market will be anyone’s guess.  There are still many uncertainties.    Questions remain as to how the changes to the federal CERB program, which is due to change in October, and the mortgage deferral program, which is set to end around the same time, will effect Buyers & Sellers.  Approx. 16% of mortgagors have deferred at least one payment.   Has this put homeowners into a financial situation in which they will not recover from?   I personally think there will absolutely be casualties which will result in mortgage defaults.   The extent will not be known till later this year and perhaps into next.

Amongst these Canadians, are workers who have not yet been able to get back to work.  The hybrid model for school reopening will leave parents without options for childcare. Those who can go work may be making difficult choices.    And amongst all this chaos is whether there will be a resurgence of new cases.  Let us not forget that the U.S.A. is in the middle of a presidential election!

As you can see… so many questions… not enough answers.  Is it the right time to buy, sell, or hold?  Will prices continue to go up or down?  Each buyer or seller is unique and I’d be happy to discuss your situation in person or by phone.

If you know of someone thinking about buying or selling I’m always looking for more great people like yourself. Always here to help!

Avg Sold per Type Aug 2020

Kingston & Area Stats – July YTD 2020

Kingston & Area Stats YTD July 2020
Kingston & Area Stats YTD July 2020

Last month I showed that the number of sales over the same period as last year was down by almost 20%. July’s sales were strong and the gap is closing-in with now recording only an 8% drop YTD. Still low based on history in the Kingston & area but it shows that despite COVID, people are still buying homes.

Average SOLD price YTD is slightly up over last month with a +11% change.

Average sold price for Kingston & area is now $435,696 with 45% of buyers this year in the $300 k – $450 k price range.

How much over asking price

We continue to see multiple offers on many properties and there appears to be a slight uptick in more aggressively priced offers over last month. But despite this, almost half of all sales were below or at asking price.

Many buyers have been discouraged but if they work with the right Realtor® that can provide guidance, their success in finding the right home will be greater.

Kingston & Area Statistics – YTD June 2020

Kingston & Area Real Estate Stats June 2020
Kingston & Area Real Estate Stats June 2020

COVID-19 and the subsequent lockdowns have certainly shifted our “spring” market.   June has seen the flood gates open as Kingston and area went into Phase 2 of reopening.  Although sellers have not completely embraced listing their homes at this time, we are seeing buyers out in full competitive force.

Our average SOLD price Year-To-Date 2020 has seen a 10% increase over the same period as last year .   Prices prices have been affected by mainly the lack of inventory & the number of buyers.  Listings are down 16% from the same period last year.  To give you another perspective as well, Kingston and area has seen a sellers market for the last 4 years.  So if we compare with the number of houses listed from 2015 (same period), inventory is down 46% from that time frame.   

Recent CMHC rule changes which came into effect July 1st, in addition to mortgage companies increased scrutiny of the buyers employment records due to COVID, are going to make things tougher for buyers.  We are just not seeing the effects of this in Kingston yet.   

MULTIPLE OFFERS
Buyer are increasing finding themselves in multiple offer situations in today’s market.  This is discouraging to many.  To buyers, it appears ALL houses are in “bidding wars” which in fact only 30% of sales sold over asking.   How much over asking is another good question.  This table shows 2019 vs 2020 $$ over ask price.  As you can see the bulk of those which did sell over asking (the 30%), were distributed between $1 – $20,000 .  

% over asking

Without perspective, it would appear that there is lots to get discouraged over.   I strongly encourage you to work with a Realtor® who has their pulse on what is going on in the market and to provide you with advise which will prepare you for what you need to do to BUY or SELL your home.    Additional stress is not what we need right now and certainly not during your house hunting.  This is suppose to be a time of joy.  

I’m always here to answer your questions.  Give me a call!

 

New Record for Kingston and Area average price

Home sales recorded through the MLS® System of the Kingston and Area Real Estate Association numbered 370 units in May, down 16 per cent from a year earlier.

“Home sales continued to run at lower levels in May while new supply almost set a record,” said Liza Tallen, President of the Kingston and Area Real Estate Association. “Despite this rebalancing of market conditions the average price has shown no signs of softening. It actually topped the $300,000 mark for the first time ever in May, although at least part of that reflects the fact that the biggest sales declines this May were seen in the $200,000 to $250,000 range. That serves to give more weight in the calculation of the average to homes selling at the higher end, and that boosts the average selling price.”

The average price for homes sold through the Association’s MLS® System in May 2014 was a record $302,872, an increase of six per cent from May 2013.

There were 1,009 new residential listings on the Association’s MLS® System in May 2014, rising 17 per cent on a year-over-year basis. This was the highest level for the month on record and only the second time new supply had risen above 1,000 units.

Overall supply levels remain elevated. Active residential listings on the Association’s MLS® System numbered 2,278 units at the end of May, up 12 per cent from the same month in 2013.

There were 6.2 months of inventory at the end of May 2014, up from 4.6 months at the end of May 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 $112.1 million in May 2014, falling 11 per cent from a year earlier.

Sales of all types of properties numbered 408 units in May, down 15 per cent on a year-over-year basis. The total value of all property sales declined 12 per cent from a year earlier to $118.9 million in May.


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.

 

Quiet April for Kingston and area home sales

Home sales recorded through the MLS® System of the Kingston and Area Real Estate Association numbered 298 units in April. This was down 18 per cent from a year earlier.

“Home sales were running at lower levels over the first quarter of the year, and that trend continued to play out in April,” said Liza Tallen, President of the Kingston and Area Real Estate Association. “While activity has quieted down in recent months, prices have shown no signs of softening. That continues to be the case despite a year-over-year decline in the average price in April. That decline was simply the result of a record-breaking jump in the measure last April, not the start of a new trend now.”

The average price for homes sold through the Association’s MLS® System in April 2014 was $283,232, a decrease of 3.9 per cent from April 2013.

There were 877 new residential listings on the Association’s MLS® System in April 2014, down 14 per cent on a year-over-year basis As with sales, new listings have also been running at lower levels in recent months.

Overall supply levels remain above last year’s levels, although they have been trending lower compared to the end of 2013. Active residential listings on the Association’s MLS® System numbered 1,979 units at the end of April, up just three per cent from the same month in 2013.

There were 6.6 months of inventory at the end of April 2014, up from 5.3 months at the end of April 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 $84.4 million in April 2014, falling 21 per cent from a year earlier.

Sales of all types of properties numbered 346 units in April, down 14 per cent on a year-over-year basis. The total value of all property sales declined 20 per cent from a year earlier to $93.3 million in April.


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 home sales and new listings down, average price up in March

Home sales recorded through the MLS® System of the Kingston and Area Real Estate Association numbered 226 units in March. This was down 10 per cent from a year earlier.

“Home sales in the region remained at lower levels in March, although still up from the beginning of the year,” said Liza Tallen, President of the Kingston and Area Real Estate Association. “Scratching the surface, it turns out the bulk of the year-over-year decline in March sales was focused in the price range from $200K to $250K, while activity priced above $500K saw a considerable uptick compared to the same month last year. As a result of this compositional change, the average home price in the region posted a double digit increase and set a new monthly record.”

The average price for homes sold through the Association’s MLS® System in March 2014 was a record $294,895, an increase of 13 per cent from March 2013.

There were 643 new residential listings on the Association’s MLS® System in March 2014, down five per cent on a year-over-year basis. New listings have slowed sharply in the past two months.

Overall supply levels remain above last year’s levels, although they have been trending lower compared to the end of 2013. Active residential listings on the Association’s MLS® System numbered 1,666 units at the end of March, up seven per cent from the same month in 2013.

There were 7.4 months of inventory at the end of March 2014, up from 6.2 months at the end of March 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 $66.6 million in March 2014, edging up one per cent from a year earlier.

Sales of all types of properties numbered 252 units in March, down nine per cent on a year-over-year basis. The total value of all property sales edged up two per cent from a year earlier to $70.9 million in March.


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 home sales show little change in February

Home sales recorded through the MLS® System of the Kingston and Area Real Estate Association numbered 176 units in February. This was down 2.8 per cent (five sales) from a year earlier.

“Home sales in the region dropped sharply in January but regained most of that lost ground in February,” said Liza Tallen, President of the Kingston and Area Real Estate Association. “Meanwhile, new listings edged back in February, which brought the market back into better balance.”

The average price for homes sold through the Association’s MLS® System in February 2014 was $274,834, almost unchanged (+$272) from February 2013.

There were 499 new residential listings on the Association’s MLS® System in February 2014, down nine per cent on a year-over-year basis.

Overall supply levels remain above last year’s levels, although they have trended lower compared to the end of 2013. Active residential listings on the Association’s MLS® System numbered 1,454 units at the end of February, up eight per cent from the same month in 2013.

There were 8.3 months of inventory at the end of February 2014, up from 7.4 months at the end of February 2013 and still 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 $48.4 million in February 2014, down three per cent from a year earlier.

Sales of all types of properties numbered 185 units in February, down 12 per cent on a year-over-year basis. The total value of all property sales dipped eight per cent from a year earlier to $5.9 million in February.

 


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.

Slow start to 2014 for Kingston home sales

Home sales recorded through the MLS® System of the Kingston and Area Real Estate Association numbered 119 units in January. This was down 19 per cent from a year earlier.

Sales of all types of properties numbered 131 units in January, also down 19 per cent on a year-over-year basis.

“January was a bit of a slow month for home sales in the Kingston area,” said Liza Tallen, President of the Kingston and Area Real Estate Association. “That said, as in many parts of Ontario the decline in sales in January was likely just a weather story, so we could easily see some of that deferred demand showing up in the months ahead and giving a boost to the spring market.”

The average price for homes sold through the Association’s MLS® System in January 2014 was $280,186, up 1.8 per cent from January 2013.

There were 586 new residential listings on the Association’s MLS® System in January 2014, up two per cent on a year-over-year basis.

Overall supply levels are on the rise. Active residential listings on the Association’s MLS® System numbered 1,345 units at the end of January, up 14 per cent from the same month in 2013.

There were 11.3 months of inventory at the end of January 2014, up from eight months at the end of January 2013 however this exactly matched 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 $33.3 million in January 2014, down 18 per cent from a year earlier. The total value of all property sales dipped 14 per cent from a year earlier to $38 million in January.


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.