Executive Summary
The Kingston, Ontario real estate market in 2024 demonstrated resilience amidst a dynamic economic landscape. While average home prices experienced fluctuations, the market showed an upward trend in sales activity. Factors such as a diverse economy, renowned educational institutions, and a high quality of life contributed to sustained demand for housing. This report delves into the key market indicators, including average home prices, sales volume, and days on market, while also exploring the various types of homes and neighborhoods in Kingston. Furthermore, it examines the driving forces behind the market’s performance and provides expert opinions and forecasts for 2025, including anticipated trends.
Market Overview
The Kingston real estate market in 2024 was characterized by a blend of stability and change. Average home prices showed some variation throughout the year, influenced by factors such as interest rates, economic conditions, and government policies. Despite these fluctuations, the market exhibited an overall upward trajectory in sales activity, indicating a healthy level of demand for housing in Kingston.
Average Home Prices
Data from various sources reveals a range of average home prices in Kingston for 2024. The median list price of homes in Kingston overall was $658,810 in December 2024, compared to $689,447 in November 2024, trending down by 4.44% month-over-month1. This decline could be attributed to seasonal factors or a slight cooling in demand towards the end of the year. The median sale price for single detached homes was little changed, down only 0.8% on a year-over-year basis to $586,975 in the third quarter of 20242. This relative stability in single-family home prices suggests a continued preference for this housing type in Kingston. The average listing prices in the city peaked at just under $750,000 in early 2022. While that number has dropped to $543,800 in 2024, it still sits far above historical rates3. This suggests that while the market may have cooled from its peak, prices remain elevated compared to pre-pandemic levels.
In addition to average and median prices, the MLS® Home Price Index (HPI) provides a more accurate view of price trends in Kingston. The overall MLS® HPI composite benchmark price was $571,700 in November 2024, a moderate gain of 5.5% compared to November 20234. The HPI tracks price trends by comparing similar properties over time, providing a more nuanced understanding of market movements. The benchmark price for single-family homes was $590,800, increasing by 7.2% on a year-over-year basis in November. By...source These figures suggest that while single-family homes continue to appreciate in value, the condo and townhome segments may be experiencing some price adjustments.
These varying price trends highlight the dynamic nature of the Kingston real estate market. Factors such as interest rate changes, economic conditions, and government policies can all influence price fluctuations. For buyers, understanding these trends is crucial for making informed decisions. For sellers, it’s essential to price their properties competitively and be prepared for potential negotiations.
Sales Volume
The number of homes sold in Kingston in 2024 showed a positive trend. In November 2024, 182 units were sold through the MLS® System of the Kingston and Area Real Estate Association, representing a 4.6% increase from November 20234. On a year-to-date basis, home sales totaled 2,581 units over the first 11 months of the year, up by 8.5% from the same period in 20234. This increase in sales volume suggests a healthy level of demand in the Kingston real estate market, driven by factors such as buyer confidence, relatively stable prices, and a desire for homeownership.
The listing supply also plays a crucial role in sales activity. In March 2024, there were 813 active listings, up 25.6% from February. 533 new listings were added in March, representing a 46.4% increase over February and 22.2% higher than March 20236. This increased supply, coupled with a steady sales pace, contributed to a balanced market. Months of inventory for single detached homes numbered 5.9 at the end of the third quarter of 2024, up slightly from the 5.4 months recorded at the end of the third quarter of 20237. Months of inventory is a key indicator of market conditions, representing the time it would take to sell all current listings at the current sales pace. A balanced market typically has 4-6 months of inventory.
The increase in sales volume, coupled with a balanced inventory level, suggests a healthy and sustainable real estate market in Kingston. This trend is likely to continue in the coming months, as buyer confidence remains strong and interest rates remain relatively stable.
Days on Market
The average days on market for homes in Kingston in 2024 varied depending on the source and time of year. As of December 2024, Kingston homes were selling on average after 72 days on Houseful when compared to 68 days in December 20231. This slight increase in days on market could be attributed to seasonal factors or a slight shift in market dynamics. However, other sources indicate that the median days on market for a home in Kingston was 1 day8. This discrepancy in data highlights the importance of considering multiple sources and timeframes when analyzing market trends.
Overall, the data suggests that while the average days on market may fluctuate, homes in Kingston are generally selling at a reasonable pace. This indicates a healthy level of demand and a relatively balanced market.
Housing Diversity
Kingston offers a diverse range of housing options to cater to various needs and preferences. From single-family homes to condos and townhomes, buyers can find properties that suit their lifestyle and budget.
Types of Homes and Average Prices
Home Type | Average Price | Benchmark Price |
|---|---|---|
As of December 2024, single-family homes commanded the highest average price, followed by townhomes and condos1. This price variation reflects the differences in size, features, and location of these property types. The benchmark prices, as of November 2024, provide a slightly different perspective, with single-family homes showing the highest benchmark price, followed by townhomes and then condos4. This suggests that while average prices may fluctuate, the underlying value of different housing types remains relatively stable.
The demand for different types of homes in Kingston is influenced by various factors, including lifestyle preferences, affordability, and demographics. Single-family homes remain popular among families and those seeking more space and privacy. Condos and townhomes offer a more affordable option for first-time buyers, students, and those seeking a low-maintenance lifestyle.
Neighborhoods and Average Home Prices
Kingston offers a variety of neighborhoods, each with its own unique character and appeal. While specific data on average home prices for different neighborhoods in Kingston is limited, some sources provide insights into the relative affordability of surrounding areas. For instance, Loyalist homes for sale had an average price of $679,000, while Tay Valley homes for sale were priced at $699,9009. These figures suggest that home prices in Kingston may vary depending on the specific neighborhood and its proximity to amenities and attractions.
Neighborhood | Characteristics | Average Home Price |
|---|---|---|
(Note: The average home prices in the table above are approximate and based on general market observations. Actual prices may vary depending on the specific property and market conditions.)
Market Drivers
Several factors contribute to the dynamics of the Kingston real estate market. These include economic conditions, population growth, government policies, and the presence of educational institutions.
Economic Factors
Kingston boasts a diverse economy with strong sectors in education, healthcare, tourism, and government services10. This economic stability contributes to a steady demand for real estate, as residents have secure employment and disposable income to invest in housing. The overall economic health of Ontario also plays a crucial role in the market, with factors such as economic growth, employment rates, and consumer confidence impacting housing demand10. A strong provincial economy provides a favorable backdrop for the Kingston real estate market, attracting investment and supporting price growth.
In addition to local and provincial economic factors, the US economy also has a minor impact on the Kingston real estate market. As the US economy improves, it can lead to increased growth in Ontario’s economy, and in turn, Kingston’s economy11. This can create more attractive investment opportunities and stimulate demand for housing.
Core demand in the Ontario real estate market is influenced by several factors, including population growth, home price growth, savings-equity, and financing12. Population growth creates a need for more housing, while home price growth can incentivize investment and speculation. Savings-equity refers to the amount of disposable income and home equity that potential buyers have available, which can influence their purchasing power. Financing options and interest rates also play a significant role in affordability and demand.
Population Growth and Demographics
Kingston’s population growth, fueled by factors such as immigration, in-migration, and a transient population, contributes to the demand for housing12. As more people move to Kingston, the demand for housing increases, putting upward pressure on prices. The city’s appeal as an educational hub, with institutions like Queen’s University, Royal Military College, and St. Lawrence College, attracts students, faculty, and staff, further supporting the rental market and housing demand10. This influx of students and academics creates a strong rental market, which can also spill over into the sales market as some students and faculty eventually choose to purchase homes in Kingston.
Government Policies
Government policies, such as changes in property taxes, housing regulations, and incentives for first-time buyers, can influence the real estate market10. Property taxes can affect affordability, while housing regulations can impact the supply of new homes. Incentives for first-time buyers can stimulate demand and increase market activity. Monitoring these policies is essential for predicting future price trends and understanding the overall market direction.
Other Factors
Kingston’s high quality of life, with its waterfront parks, cultural festivals, and historic sites, also contributes to its desirability as a place to live10. This can attract residents from other areas and increase demand for housing. Additionally, the presence of military postings and veterans retiring in the town adds to the demand for housing3. Military personnel and veterans often have stable employment and housing benefits, making them reliable buyers in the real estate market.
The increased construction of rental units in Kingston is another factor influencing the real estate landscape11. As more rental units become available, it can ease pressure on the rental market and potentially free up some units for sale. However, the high demand for rental properties, particularly among students, is driving a push to build more short-term let units3. This trend could have implications for the availability of homes for first-time homebuyers, as some properties may be diverted to the short-term rental market.
Market Outlook for 2025
Expert opinions and forecasts suggest a positive outlook for the Kingston real estate market in 2025. Several factors, including lower interest rates, government initiatives, and increased buyer confidence, are expected to contribute to market growth.
Expert Opinions and Forecasts
Experts predict a robust year for sales in 2025, with first-time homebuyers returning to the market in a big way13. This renewed interest from first-time buyers is attributed to several factors, including lower interest rates, government initiatives aimed at improving affordability, and a growing sense of optimism about the market. Changes in mortgage rules, such as the expansion of insured mortgages and 30-year amortizations, are expected to make buying easier for first-time homebuyers13. These changes reduce the financial barriers to entry for first-time buyers, allowing them to qualify for mortgages with lower down payments and more manageable monthly payments. The removal of the stress test for uninsured mortgages is also anticipated to boost affordability and qualification for many Canadians14. This change makes it easier for borrowers to qualify for mortgages, potentially increasing demand and driving market activity.
Anticipated Trends
Several trends are anticipated in the Kingston real estate market for 2025:
- Increased Sales Activity: Experts predict a significant increase in sales activity, driven by lower interest rates, government initiatives, and returning buyer confidence15. This surge in sales is expected to be fueled by both first-time homebuyers and move-up buyers, creating a more competitive market.
- Moderate Price Growth: While prices are expected to rise, the growth is likely to be moderate compared to previous years16. This suggests a more stable and sustainable market, with less risk of a price bubble.
- Shifting Market Dynamics: Different regions in Ontario are expected to experience varying market conditions, with some favoring buyers and others favoring sellers17. This highlights the importance of local market knowledge and understanding the specific dynamics of each region.
- Focus on Affordability: Affordability remains a key concern, and government initiatives and market adjustments are expected to address this issue17. Measures such as expanded mortgage insurance and longer amortization periods are aimed at making homeownership more accessible to a wider range of buyers.
Conclusion
The Kingston, Ontario real estate market in 2024 demonstrated resilience and an upward trend in sales activity. While average home prices experienced some fluctuations, the market remained relatively stable. Factors such as a diverse economy, educational institutions, and a high quality of life contributed to sustained demand for housing. The presence of military personnel, veterans, student accommodations and medical professionals also played a role in supporting the market.
Looking ahead to 2025, experts anticipate a positive outlook for the market, with increased sales activity and moderate price growth. Government initiatives and lower interest rates are expected to improve affordability and boost buyer confidence. The market is likely to be more competitive, with both first-time homebuyers and move-up buyers vying for properties.
Overall, the Kingston real estate market appears to be in good health, with a balance between supply and demand. The market is supported by a strong local economy, a desirable location, and a diverse range of housing options. While affordability remains a concern, government initiatives and market adjustments are expected to mitigate this issue and make homeownership more accessible. As the market continues to evolve, monitoring key trends and adapting to changing conditions will be crucial for both buyers and sellers in Kingston.