Slim pickings for homebuyers
Thursday Dec 16th, 2021
As listings plunge and prices soar, the buyers have slim pickings over the houses.
Although the weather is cooling down, the housing market in the Kingston Area is still heating up. While the home sales across the region were down in comparison to November 2020 by 16.6 percent, ongoing lack of supply down to 0.3 months (which is only 9 days)! The continued brisk demands pushed prices to an all-time high point.
With the city of Kingston, the detached homes segment saw the biggest price gain on a year-over-year basis, up by 26.3% to 616,749 in October. New listings also plunged sharply in October (down by 26.6% versus last year) as did active listings (down by 36.8% versus last year). It has been slim pickings for buyers, as the number of houses on the market dropped significantly by a whopping 22% over November 2021. This ongoing shortage is one of the major drivers of home price growth and has become a concern for industry experts.
TRREB president Kevin Crigger noted, “Demands have remained incredibly robust throughout November with many qualified buyers who would buy a home tomorrow provided they could find a suitable property...The lack of housing supply and choice has reached a critical juncture. Band-aid policies to artificially suppress demand have not been effective. This is not an issue that can be solved by one level of government alone. There needs to be collaboration federally, provincially, and locally on a solution.” The housing shortage is not expected to wane in any significant way shortly. Meanwhile, as the vaccination rate increases, the economic, and employment expand, and immigration returns, demand is expected to increase, continuing to drive up home prices.