It was an earlier start than anticipated to the spring market this year, good weather helps a lot of things! January came and went with only 2 plows of my driveway. It was an unusually green start to the year. The trees started to bud early, and the sun is shining now mostly every day. After a quiet end to 2023, there is a sense of renewal again, which happens every year, but in the world of real estate, things feel as though they have begun to turn a corner.

With the anticipation of the market heating up again, after 10 Bank of Canada rate hikes between March of 2022 and July of 2023, the hesitation many buyers and sellers have been feeling seems to be subsiding. The last 5 announcement cycles have seen the benchmark rate hold steady at 5%. Speculation is that it will still likely be mid-year before we see any rate reduction, but the overall mood has been more positive, and both buyers and sellers seem to be looking to get ahead of what’s to come. When the interest rates drop, it is predicted that competition may resume, and prices will go up. For now, having the ability to offer on a property with financing or home inspection conditions, or even conditional on selling your current home, has been a welcomed shift. It’s taken away some of the pressures that come with risk, and that has improved buyer confidence and opportunities. It’s eased buyers’ minds in allowing for greater due diligence, and that’s truly been a welcomed change.

The January and February KAREA stats provided evidence that we are in a balanced market again, meaning there is an equilibrium between the number of current active buyers and the number of active listings. The average price of a home in Kingston came in at 564,404 for January, and 589,547 for February; the year-to-date average price ending March 30th was 605,000. The number of sales has increased too when compared to last year, almost 32% in January, making it a much earlier start than usual, and the upward trend continues. Although both sales and inventory remain well below historical averages, the increase in availability or in the overall number of listings, has offered buyers more choices.

Demand hasn’t gone anywhere, it just remained quiet as both buyers and sellers hoped to feel more confidence about the future of prices. Right now, well priced properties in general that are turnkey will attract a lot of attention, and sell quickly. Costs to renovate have increased enormously over the last 5 years, and so a move in ready or renovated home makes good sense for a lot of people. Multiple offers are even happening in some circumstances, though with more modest and conservative approaches to bidding. Overall, earlier speculations were that things would remain quiet until the Bank of Canada announced a rate cut, but the evidence again shows that this is shifting.

If you are thinking of buying this year, it really does feel like this may be the calm moment before things turn once again. Time will tell, no one has a crystal ball. The reality is people need to buy and sell when the time is right for them, or feels right for them, as it should be and always has been. If you have a good realtor talk to them about your options and of course your future plans, they are a part of the greater picture. If you don’t, it would be my pleasure to help and discuss your goals for the year ahead.