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Kingston Real Estate Market Down from 2016, but Still Thriving

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Kingston Real Estate Market Down from 2016, but Still Thriving

The Kingston real estate market is showing a pattern that is familiar to anyone acquainted with the real estate statistics throughout Ontario this year. While not out-performing the huge spike that most areas saw in 2016, the market is still performing very strongly when compared to its historical averages. In Kingston, not counting 2016, sales have not been as strong as they were in August 2017 since 2007.

Overall, there were 326 homes sold in the Kingston area during the month of August. Given the 2016 highs, this was a 4.1% year-over-year decline. However, these sales figures are still well above the ten-year average, and would have represented a 10-year high if not for 2016. The year as a whole is performing exceptionally well, beating even 2016 by 10.1% with 2,864 units sold to date through to the end of August.

Listings Drying up in Kingston

One of the challenges facing the Kingston real estate market moving forward is the rapidly shrinking number of available homes for potential home buyers to choose from. In August, there were only 478 new homes placed for sale. A 7-year low, this was a 25.5% year-over-year drop in new listings. The news isn’t any more encouraging from the supply side when looking at the overall number of active listings, which sat at 1,158 at the end of the month. This was an even steeper 39.4% down from 2016.

Prices Enjoying Gradual Growth in Kingston

The slight decline in sales coupled with decreasing listings seems to have resulted in relatively stable pricing in the Kingston market, with no massive pricing corrections in either direction. Instead, a gradual but healthy year-over-year increase in average home prices was seen in the area. The average sale price for August was up 4% to $323,231 on a year-over-year basis. The year-to-date price has climbed slightly more, increasing by a margin of 8.7% to $330,589.

Overall, Kingston fits in with the trends being seen throughout much of Ontario outside of Toronto. Prices are up slightly, with inventory down and sales high, even though they might not match the occasional spike that occurred during 2016. Increasing interest rates may be among the factors that are cooling sales somewhat, as well as changing regulations in the Ontario housing market. For the time being, however, Kingston remains a robust real estate market that doesn’t show any signs of cooling significantly in the immediate future.

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