School is back and summer is shifting to the warm, earthy tones of autumn. For many the cool nights are a welcome relief from the heat of the summer. Our team has had a very busy end to the summer with many homes going pending and buyers getting keys to their new home. We appreciate the support and look forward to increasing the size of our team this fall.
As we move to fall, homeowners and homebuyers wonder about shifts
in the housing market. Will prices move up or hold? Will sales level increase
in the months ahead? There are many factors at play and for many the Bank of
Canada’s (BOC) key interest rate is impactful for their decisions. On September 6th, the BOC announced its new interest rate and it chose to hold the key interest
rate at 5%. The BOC will hold at this rate until its next announcement on
October 25th. Based on current data, most economists anticipate that
no further changes will occur in 2023. Generally, holding interest rates should
give the housing market confidence for the remaining months.
The real estate market in Kingston is performing with the usual peaks and valleys of sales figures. Spring has been the busiest time for sales and overall, we anticipate that the fall slowdown of sales will likely mirror previous years.
Here’s a detailed analysis of the current market conditions:
Year-to-date cumulative Total Sales Comparison vs. Prior Years:
- August 2021: 2970
- August 2022: 2275
- August 2023: 1903
Monthly Data of Homes Sold:
- August 2021: 293
- August 2022: 236
- August 2023: 214
At Month-End Total Homes for Sale:
- August 2021: 290
- August 2022: 637
- August 2023: 837
At Month-End Total Monthly Supply of Inventory:
- August 2021: 0.8
- August2022: 2.3
- August 2023: 3.8
Average Prices of Homes in August vs. Previous Years:
- August 2021: $579,933
- August 2022: $592,101
- August 2023: $615,052
Year-to-Date Average Price of Homes:
- August 2021: $575,255
- August 2022: $665,348
- August 2023: $617,388
New Listings in the Month of August vs. Previous Years:
- August 2021: 345
- August 2022: 439
- August 2023: 445
Market Trends and Insights:
#RealEstateMarket: Cumulative Year-to-Date Sales Decline Continues:
The Kingston real estate market has experienced a sustained decline in year-to-date total sales over the past three years. At the end of August 2023 our market had recorded 1903 total sales, signifying a 16% drop from the previous year (2275 sales). This trend suggests a market that has cooled compared to the peak year of August 2021.
#HousingTrends: Monthly Homes Sold Remain Low:
August 2023 saw only 214 homes sold, down from 236 in August 2022. The lower number of homes sold has been fueled by the BOC interest rate changes.
#HousingInventory: Rising Inventory:
The number of homes available for sale has been steadily increasing, with 837 homes listed for sale in August 2023 compared to 637 in August 2022 and 290 in August 2021. This indicates a growing inventory that offers more choices for buyers.
#MarketBalance: Balancing Market:
The Month Supply of Inventory reached 3.8 months in August 2023, suggesting a shift toward a more balanced market. This increased supply indicates that buyers may have more options and potentially less pressure to act quickly.
#PropertyPrices: Moderate Price Growth:
Average home prices have experienced moderate growth, reaching $615,052 in August 2023. While prices are rising, the rate of increase has slowed compared to previous years.
#NewListings: New Listings Maintain Steady Growth:
August 2023 saw 445 new listings, continuing the trend of increasing new listings compared to previous years. Sellers are still entering the market despite changing conditions.
What to Expect:
The Kingston real estate market is transitioning from a seller’s market to a more balanced one. Buyers have increased options and potentially more favorable negotiation conditions.
Sellers should consider competitive pricing and ensure their properties stand
out in a more competitive landscape.
Conclusion:
The Kingston real estate market in August 2023 reflects a shift towards a more balanced state, with increased inventory and moderated price growth. Both buyers and sellers should adapt to these
changing dynamics to make informed decisions in the evolving real estate
landscape.
#KingstonRealEstate #MarketUpdate