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Kingston Real Estate: Low Inventory Heats Up Market

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Kingston Real Estate: Low Inventory Heats Up Market
3 min. read

Image: milosk50/Shutterstock.com

In March 2019, the Kingston real estate market was driven by a record shortage of supply, pushing the average home price higher than ever. A major cause of this was the number of new listings coming onto the market, which was the lowest that has been seen for a long time. A hot sellers’ market is the result. 

Low Housing Supply

Housing supply in Kingston is trending very low indeed, with 881 units listed on the market at the end of March 2019, which was an 11.1% decrease from the previous year. The number of new listings up for sale was 549, which represented an even larger year-on-year decline of 15.5% and is the lowest number for March since 2003.

Numbers of ListingsMarch 2019Year-over-Year % Change
All Listings88111.1%
New Listings54915.5%

Low Inventory

Limited supply creates a low number of months of inventory—this metric represents the period it would take for all the properties on the market to be sold given the rate of sales activity at that time. Kingston had just 3.1 months of inventory by the close of March 2019, a figure which was unchanged from the previous year and a long way below the long-term average of 6.8 months for March.

Decreased Total Sales

The lack of change in the year-over-year number of months of inventory does not mean that activity is the same as a year previously, as the rate of sales is also factored in. A total of 288 residential units were sold in March 2019, which represented a substantial decrease of 13% from March of the previous year.

The decreased activity in the market can also be seen by viewing the total value of all homes sold, which was $111.5 million in March 2019, down 2.8% from March 2018.

Sylvie DesHaies, President of the Kingston and Area Real Estate Association, has said that:

“With the record supply shortage in the region only worsening, along the fewest new listings in 16 years, it’s not a surprise that fewer homes traded hands in March. As we have seen in recent years, excess demand that is not able to be converted into sales because of a lack of supply will continue to spill over on to the price side.”

Increased Prices

Because there have been fewer listings coming on the market, sellers have clearly felt it possible to raise the prices of their homes. The average price of residential property that sold in March 2019 was $387,166, which was an 11.7% increase from the same month of the previous year. The year-to-date price, which is a better indication of broad housing market trends, was $374,888, an increase of 4.8% from the first quarter of 2018.

 Average PriceYear-over-Year % Change
March 2019$387,16611.7%
Q1 2019$374,8884.8%

The latest news on the Kingston, ON housing market is that buyers are not having an easy time right now, with a lot of competition for homes on the market. One recommendation to buyers is that they try putting in their best offer on the property they want before it gets listed. The market is currently red-hot, and until something is done to address the lack of inventory this may continue.

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