The Kingston and area market sales for September did follow our typical pattern for this time of year. This is not to say that the craziness is over but the number of listings have certainly dropped and therefore the number of sales.
Homes continue to sell over list by about 5%. But we are seeing more and more houses back on the market because buyers are not able to get their financing in order or possibly appraisals not coming in high enough.
Things to watch for:
- Businesses are seeing price pressures which will translate to higher inflation. This in turn will hit the 5 year bond rate which is the leading indicator for 5-year fixed mortgage rates.
- There are still 1.7 million Canadians on wage subsidy programs, which are scheduled to expire on October 23. Businesses continue to report shortages of workers. Who knows how this will play out
- Mortgage debt has been growing at a record pace over the past year, and if that continues, we may see more tightening and new mortgage regulations could come down the pipeline later this year or in early 2022.