Kingston and Area Real Estate Association MLS® home sales, prices continue to decline as supply levels rise in July
The number of homes sold through the MLS® System of the Kingston and Area Real Estate Association totaled 275 units in July 2022. This was a sharp decrease of 26.5% from July 2021.
Home sales were 28% below the five-year average and 25.6% below the 10-year average for the month of July.
On a year-to-date basis, home sales totaled 2,236 units over the first seven months of the year. This was down sharply by 24.3% from the same period in 2021.
“Sales activity dropped to the lowest July reading since 2006, as rising mortgage rates continue to impact buyer affordability and sellers are still adjusting their pricing expectations to catch up with the market,” said Mark Malinoff, President of the Kingston and Area Real Estate Association. “As with many other markets in the province there is no shortage of new listings at the moment, and overall supply levels are finally starting to rise from historical lows. It’s going to take some time for the market to reach an equilibrium between buyers and sellers where sales begin to rise again, especially with a few more rate hikes on the horizon. We expect that demand will remain subdued for the time being and the prices will moderate in the near term as both sides adjust to new market conditions.”
The MLS® Home Price Index (HPI) tracks price trends far more accurately than is possible using average or median price measures. The overall MLS® HPI composite benchmark price was $567,100 in July 2022, up by 10.8% compared to July 2021.
The benchmark price for single-family homes was $574,100, an increase of 9.4% on a year-over-year basis in July. By comparison, the benchmark price for townhouse/row units was $578,000, a sizable gain of 18.7% compared to a year earlier, while the benchmark apartment price was $459,100, a substantial gain of 32.7% from year-ago levels.
The average price of homes sold in July 2022 was $626,834, an increase of 10.6% from July 2021.
The more comprehensive year-to-date average price was $677,904, a sizable gain of 18.2% from the first seven months of 2021.
The dollar value of all home sales in July 2022 was $172.4 million, a substantial decline of 18.7% from the same month in 2021.
The number of new listings saw a gain of 27% from July 2021. There were 560 new residential listings in July 2022.
New listings were 3.6% above the five-year average and 9.3% below the 10-year average for the month of July.
Active residential listings numbered 763 units on the market at the end of July, up sharply by 75.4% from the end of July 2021.
Active listings were 6.4% below the five-year average and 46.4% below the 10-year average for the month of July.
Months of inventory numbered 2.8 at the end of July 2022, up from the 1.2 months recorded at the end of July 2021 and below the long-run average of 3.9 months for this time of year. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.
Board & Association Information
Incorporated over 75 years ago as a not-for-profit organization, the Kingston & Area Real Estate Association (KAREA) represents over 630 real estate professionals who are also members of The Canadian Real Estate Association (CREA) and the Ontario Real Estate Association (OREA ).
KINGSTON AND AREA REAL ESTATE ASSOCIATION
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