Coronavirus, Recession Whispers, and Oil Prices, Oh My!
March 11, 2020
I’m Jessica Stoner, Realtor with RE/MAX Alpine Realty and the Jessica Stoner Real Estate Team in Canmore, AB. I have been a Realtor in Canmore for 22 years, and have witnessed past market highs and lows due to many factors we have been facing in recent days.
Myself and my team have received many calls from buyers and sellers alike over the past week or so, asking how these above items might affect the Canmore real estate market. We are sharing some information on the state of the market to help you make your buying and selling decisions.
Some sellers have engaged in price reductions and more flexible negotiations already, to try to sell before the market is affected. Likewise, we have had buyers put a hold on negotiations or putting in offers with the concern that they may overpay now, or are wanting to wait to see if there will be adjustments in the market in the next few months. However, this is a minor portion of the market at this time. Other buyers and sellers continue to list, negotiate, buy their properties with business as usual. However, many want to know how things will likely play out in the next few months.
The question is, “Will Canmore see a real estate market correction?”
Here is an overview of the current factors affecting the real estate market in the Bow Valley.
Oil Prices– Alberta’s economy is tied to the energy sector and any large price adjustment could potentially affect real estate markets in the province in general. However, Canmore tends to be somewhat isolated from the volatility of the oil industry, due to different factors that drive our market. Our community tends to be employed more in the tourist industry, and future retirees, which are a large part of our current buying market, are less likely to make buying decisions based on the current state of the gas industry.
Tourist Industry– Since we are a somewhat tourist based town, there are concerns that we will see less visitors due to COVID-19. Though this is likely true in some towns such as Banff and Jasper that attract more international visitors, Canmore tends to see more local visitors that make up our tourism. With more people avoiding planes and international travel, we are likely to see an increase in Albertans and other Canadians visiting the area, helping to keep our economy rolling along.
Stock Market– Everyone gets nervous seeing major volatility in the stock market. This could potentially lead to people wanting to put their retirement funds into something more solid, such as bricks and mortar real estate. This could be the purchase of a rental property, or the purchase of one’s future retirement home now.
Interest Rates – The recent cut to the already low interest rates, may spur new buying activity.
Coronavirus (COVID-19)- We have experienced real estate markets affected by all of the above factors from time to time in the past couple of decades, and the Canmore real estate market has always returned and continued to appreciate in value after a correction period.
A pandemic, such as COVID-19 is an usual factor to try to account for in real estate forecasts. Unfortunately, recommendations to the public to help minimize the unnecessary spread of the virus has led to great fear of the virus itself. Fear can slow markets down temporarily.
While there will likely be some changes to buyers and sellers behaviour while trying to decide how these above factors will affect the Canmore Real Estate Market, ultimately, buyers and sellers will still have the same needs and desires relating to their real estate purchase and sales in Canmore. Though the volume and pricing of sales is still to be determined, Sellers will continue to sell and Buyers will continue to buy their homes, retirement homes and investment properties in Canmore.
Be safe out there and make decisions based on knowing that, this too, shall pass.
Feel free to contact Jessica Stoner and Team for more information on this update or the Canmore real estate market.
403-678-8006 , firstname.lastname@example.org , jessicastoner.ca
“In the middle of difficulty lies opportunity”
― Albert Einstein