The Kingston real estate market has continued to evolve, showing notable shifts in several key areas compared to July 2024. Coupled with recent adjustments to interest rates by the Bank of Canada, the landscape for buyers, sellers, and investors remains dynamic. Here’s a closer look at the August 2024 market and how recent rate cuts may affect you.
Key Takeaways:
1. Price Trends:
The average sold price in Kingston has decreased by 9.2% year-over-year, sitting at $606,251 in August 2024. While this follows a smaller decline of -1.7% from July, the rate of price correction indicates increased opportunities for buyers, especially with borrowing costs easing.
2. Inventory Growth:
The number of homes for sale rose by 13.6% compared to last year, with 434 properties on the market. This continued growth in inventory provides more options for buyers and could lead to even greater negotiating power in the months ahead.
3. Sales Volume:
Home sales have remained relatively steady, with 119 homes sold in August, a slight drop of 0.8% compared to last year. This contrasts with the 22.8% increase in sales we saw in July, suggesting that while buyer interest remains strong, price sensitivity is becoming more pronounced.
Interest Rate Impact:
The Bank of Canada has now implemented its third consecutive interest rate cut, lowering the rate to 4.25%. This marks a total reduction of 75 basis points since June 2024, as part of ongoing efforts to ease inflation and stimulate the economy【Source】【Source】. Lower rates are good news for prospective homebuyers, as they reduce mortgage costs and improve affordability. Variable-rate mortgages, in particular, have become more attractive, and with further cuts expected later this year, affordability is likely to improve【Source 】.
However, despite these lower rates, mortgage costs are still significantly higher than the pandemic-era lows, which may keep some buyers on the sidelines for now【Source 】. The real estate market may take time to fully respond to these reductions, but they are setting the stage for more favorable conditions in the coming months.
What This Means for You:
Buyers: With rising inventory and decreasing prices, this could be an opportune time to enter the market, particularly with the possibility of additional rate cuts on the horizon.
Sellers: The market is becoming more competitive, and pricing your home strategically is essential to attracting motivated buyers.
Investors: With interest rates falling and more homes available, now may be the right time to explore investment opportunities before market conditions tighten.
For a more personalized analysis or to explore how these changes affect your real estate goals, our team is here to help!
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Warm regards,
Jay Gazeley
Gazeley Real Estate Group, eXp Realty, Brokerage
Phone: 613.561.4653 Email: jay.gazeley@exprealty.com
Website: www.gazeleyrealestategroup.ca
On behalf of the entire team:
Sean Gazeley
Phone: 613.888.9267 Email: sean.gazeley@exprealty.com
Turner Gazeley
Phone: 613.876.5406 Email: turner.gazeley@exprealty.com