Housing report

Housing report confirms Kingston home prices are rising exponentially

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A report released Thursday by real estate company Royal LePage confirms what every home buyer and seller in the Kingston area has realized in 2021: Local home prices have all but skyrocketed.

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According to the Royal LePage Home Price Survey, the overall price of a home in Kingston rose 38.1% year-over-year to $722,100 in the fourth quarter of 2021.

During the same period, the median price of a single-family detached home rose 44.3% to $780,600, the highest appreciation rate nationally, according to the survey.

Condominium prices rose 20.1% 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 into town with their clients in addition to people from Kingston looking for homes, that’s how it is – a situation supply and demand, that’s what it all does,” said Bob Armer, regional manager of Royal LePage ProAlliance Realty.

Armer estimated that 40-50% of buyers come from outside the region, with the majority coming from the Greater Toronto Area.

“Almost all listings sell out in a multiple-bid scenario, which makes it very difficult for locals and first-time buyers to compete,” he said. “Buyers from outside the area are not contributing to the local housing supply as they are not listing their homes in Kingston, which is increasing the upward pressure on home prices.

“It’s not unusual when we have a house listed in January that sometimes sells for $150,000 to $200,000 above the asking price.”

He said ProAlliance Realty recently sold a bungalow just west of Amherstview this week, which was listed for $729,000. The owners received 13 offers and the house sold for $930,000.

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A home the local office sold on Thursday morning – paired with a one-car garage in central Kingston – had an asking price of $399,000 and sold for $635,000.

Armer expects the supply and demand trend to continue.

“People are leaving the GTA and they are coming here. All of the new inventory that is built and offered to be built is purchased by out-of-town investors.

Advances in remote technology for workers are fueling some of the migration eastward from the Greater Toronto Area, Armer said.

“Everyone is leaving Toronto because of COVID and everyone is working remotely anyway,” he said.

Armer said homeowners can sell their home for $1.2 million in the Toronto area and buy a larger home for about half the price in the Kingston area.

“They can bank the $600,000, they make the same money and live in a nicer house, double the size of a nicer community,” he said.

“Kingston was a bit too far four or five years ago, but not anymore.”

A buoyant spring market is also expected, Armer said, but the rate of price appreciation may moderate slightly as interest rates are expected to rise.

The percentage increase in the average house price in Kingston is more than double the Canadian average.

Nationally, the overall price of a home rose 17.1% year over year to $779,000 in the fourth quarter of 2021.

Broken down by housing type, the national median price of a single-family detached home rose 21.1% year over year to $811,900, while the median price of a condominium rose 15 .8% year over year to $553,800.

The survey also found that strong buyer demand continues to outstrip supply in almost every market nationwide.

With the chronic shortage of housing in Canada, which began before the pandemic, and the demand for more housing that is increasing with the increase in demand from newcomers to Canada, affordability threatens to erode again.

The Royal LePage National Home Price Composite is collected from proprietary property data, nationally and in 62 of the country’s largest real estate markets.

imacalpine@postmedia.com

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A home for sale by Royal LePage ProAlliance on Woodbine Road in Kingston on Thursday. Photo by Ian MacAlpine /Ian MacAlpine/The Whig-Standard/Postmedia Network