Real Estate Blog

As of May 2025, the Kingston, Ontario real estate market is experiencing a shift towards more balanced conditions, influenced by rising inventory levels, moderated price growth, and cautious buyer activity.

 Market Overview

• Sales Activity: In April 2025, 265 homes were sold through the MLS® System, marking an 18.2% decline compared to April 2024. Year-to-date sales for the first four months totaled 790 units, down 11.8% from the same period last year.
  

• Average Prices: The average home price in April 2025 was $625,184, a 5.8% decrease from April 2024. The year-to-date average price stands at $621,097, reflecting a slight 0.9% dip from the previous year.
  

• Benchmark Prices: The MLS® Home Price Index composite benchmark price reached $571,100 in April 2025, a modest 1.9% increase year-over-year. Single-family homes saw a 2.9% rise to $591,600, while townhouse prices declined by 10.8% to $474,500.
  

 Inventory & Market Conditions

• Listings: Active residential listings at the end of April numbered 1,253, up 5.5% from April 2024. This represents the highest April inventory in a decade, with levels 56.6% above the five-year average.
  

• Market Balance: The months of inventory increased to 4.7 in April 2025 from 3.7 a year earlier, indicating a shift towards a buyer's market.
  

 Outlook for 2025

• Price Projections: RE/MAX forecasts a 5% increase in average home prices for Kingston in 2025, with sales volumes expected to rise by 10%.
  

• Buyer Demographics: The market is anticipated to see activity from various groups, including first-time buyers, move-up buyers, downsizers, retirees, and investors.
  

• New Construction: An uptick in new construction is expected, focusing on townhomes, detached homes, and condominiums.
  

• Affordability Factors: Lower interest rates and extended amortization periods are projected to ease carrying costs, potentially improving affordability for first-time buyers.
  

 Key Takeaways

• The Kingston real estate market is transitioning towards a more balanced state, with increased inventory and moderated price growth.
  

• Buyers may find more opportunities and negotiating power, while sellers might need to adjust expectations and pricing strategies.

• Affordability remains a concern, but anticipated interest rate reductions and new housing developments could provide relief.

For those considering entering the Kingston housing market, staying informed about these trends and consulting with local real estate professionals can provide valuable guidance.