The number of homes sold through the MLS® System of the Kingston and Area Real Estate Association totaled 255 units in August 2022. This was a decrease of 20.8% from August 2021.
Home sales were 24.8% below the five-year average and 22.6% below the 10-year average for the month of August.
On a year-to-date basis, home sales totaled 2,489 units over the first eight months of the year. This was down 24% from the same period in 2021.
“Demand for MLS® listed homes continued to soften in August, with the total number of sales falling to the lowest monthly level since January.” said Mark Malinoff, President of the Kingston and Area Real Estate Association. "The number of newly listed properties in August were at the low end of what we would expect for this time of year and was the fourth month in a row that new listings have declined. Both average price and the MLS® HPI Composite Benchmark Price were down for the fifth consecutive month. The Bank of Canada’s forceful approach to taming inflation has very quickly changed the realities of our local market and it appears both buyers and sellers may be waiting for the dust to settle before proceeding. As a result, market balance has shifted very quickly from heavily in favour of sellers, to a balanced market and may well be heading for a buyers’ market for the first time in many years. Only time will tell how the conditions over the next few months will play out, but with additional rate hikes on the horizon, it is reasonable to expect further uncertainty until the Bank of Canada signals an end to its quantitative tightening cycle.”
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 $561,200 in August 2022, up by 5.9% compared to August 2021.
The benchmark price for single-family homes was $569,900, an increase of 4.7% on a year-over-year basis in August. By comparison, the benchmark price for townhouse/row units was $556,100, a sizable gain of 14.1% compared to a year earlier, while the benchmark apartment price rose 22.8% to $450,100.
The average price of homes sold in August 2022 was $598,468, a marginal increase of 2.1% from August 2021.
The more comprehensive year-to-date average price was $668,843, gaining 16.3% from the first eight months of 2021.
The dollar value of all home sales in August 2022 was $152.6 million, a notable decline of 19.1% from the same month in 2021.
Although, the number of new listings rose 25.6% from August 2021, they are in line with the long run averages for the month. There were 485 new residential listings in August 2022.
New listings were 0.5% above the five-year average and 14.9% below the 10-year average for the month of August.
Active residential listings numbered 731 units on the market at the end of August, up sharply by 88.4% from the end of August 2021.
Active listings were 5.7% below the five-year average and 46.6% below the 10-year average for the month of August.
Months of inventory numbered 2.9 at the end of August 2022, up from the 1.2 months recorded at the end of August 2021 and below the long-run average of 4.3 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.