Homeowners in Kingston could get several per cent more selling their homes this year - as much as $20,000 on a $300,000 home - if they’re ready and willing to get into the market quickly.
The number of properties on the Kingston market is taking a nose dive just as demand builds.
There are 30 per cent fewer properties on the market compared to a year ago, 40 per cent fewer compared to two years ago, and yet sales have still risen 15 per cent in the past 12 months.
Buyers are competing harder for fewer properties. Competition for the best offerings is quick out of the gate, with multiple offers increasingly common. Average home price is up eight per cent. Executive homes over $500,000 have had a tough few years on the market, but now they’re being snapped up, just as CMHC is tracking an increase in local employment and earnings in the 45-65 executive range.
But is this a flash in the pan trend that will soon lose steam, or is this a new stronger direction for real estate in Kingston? The future isn’t yet clear.
Three years ago, Kingston’s home market was in the exact opposite situation, with high numbers of listings flooding the market, and competition holding prices down. The Kingston market saw no appreciable appreciation in home values in 2014, but it’s been creeping back up ever since - 3% in 2015, 4% in 2016, and so far this year, prices are up fully 8% from a year ago.
There are obvious parallels and connections to what is happening in the overheated Toronto market. Boomers ready to retire are looking to cash in their big-city properties before the proverbial bubble bursts, and Kingston has much appeal. Investors have also been eyeing more affordable opportunities in this city. But if the Toronto market experiences a correction, it may also have some effect here in Kingston.
Those homeowners who keep their properties in top condition, are often the ones who can benefit when market conditions suddenly turn in their favour. They can choose to jump in at the perfect moment, without having to tweak things first with maintenance and repairs and in some areas of the city that’s going to mean a lot of extra cash in people’s pockets. As usual, it pays to be prepared!
Is your neighborhood one of the ones with high demand? Contact me for more information and statistics on what's going on in your area and how you can benefit.
I counsel homeowners and sellers to be in control of market forces, not battered by them.