A report released Thursday by real estate firm Royal LePage confirms what every home buyer and seller in the Kingston area realized in 2021 – local house prices have almost gone through the roof.
According to the Royal LePage house price survey, the total price of a house in Kingston rose 38.1 percent year-on-year to $ 722,100 in the fourth quarter of 2021.
During the same period, the median price of a detached house rose 44.3 percent to $ 780,600, the highest appreciation rate nationwide, the study said.
Condominium prices rose 20.1 percent to $ 423,600 over the same period.
“We have zero supply and huge demand, and with all the out-of-town real estate agents coming to town with their clients on top of Kingston, people looking for houses, it’s just the way it is – a supply-and-demand situation, it is what drives everything, ”said Bob Armer, area manager for Royal LePage ProAlliance Realty.
Armer estimates that 40 to 50 percent of buyers are from outside the region, the majority of whom come from the Greater Toronto area.
“Almost every list is sold in a multi-offer scenario, making it very challenging for local and first-time buyers to compete,” he said. “Buyers outside the region are not contributing to the local housing stock supply as they are not building their home in Kingston, putting further upward pressure on house prices.
“It’s not unusual when we have a house built in January that is sometimes sold for $ 150,000 to $ 200,000 above the offer price.”
He said ProAlliance Realty recently sold a $ 729,000 bungalow just west of Amherstview this week. The homeowners received 13 offers and the house was sold for $ 930,000.
A house that the local office sold Thursday morning – a detached house with a single-car garage in downtown Kingston – had a bid price of $ 399,000 and sold for $ 635,000.
Armer expects the supply and demand trend to continue.
“People are saving out of GTA, and they’re coming here. All the new furniture that is being built and offered to be built is being bought by out-of-town investors.”
Advances in remote technology for working people are fueling some of the migration eastward from the Greater Toronto area, Armer said.
“Everyone comes out of Toronto because of COVID, and everyone works remotely anyway,” he said.
Armer said homeowners can sell their $ 1.2 million home in the Toronto area and buy a larger home for about half the price in the Kingston area.
“They can knock the $ 600,000, they make the same money and live in a nicer house, twice as big in a nicer community,” he said.
“Kingston was a little bit too far (away) four or five years ago, but not anymore.”
A lively spring market is also expected, Armer said, but the rate of rise in prices may slow down slightly as interest rates are expected to rise.
Kingston’s average house price increase rate is more than double the Canadian average.
At the national level, the total price of a home rose 17.1 percent year-over-year to $ 779,000 in the fourth quarter of 2021.
Divided by dwelling type, the national median price for a single-family home rose 21.1 percent year-on-year to $ 811,900, while the median price for a condominium rose 15.8 percent year-over-year to $ 553,800.
The survey also said that strong buyer demand continues to exceed supply in almost all markets across the country.
With Canada’s chronic housing shortage, which began before the pandemic, and the demand for more homes rising with more newcomers to Canada increasing demand, affordability is threatening to erode again.
The Royal LePage National House Price Composite is collected from proprietary property data, nationally and in 62 of the country’s largest real estate markets.
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