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.
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 .
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!