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!
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?
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.
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!
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.
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.