July 12, 2013
It has been 23 days since the flood water crashed into Canmore. It is truly amazing what people can accomplish in 23 days. The cleanup and repair of some major infrastructure took mere days, where a more logical guess would have estimated it at weeks. Things are certainly not back to normal for those unfortunate families hit the hardest. But as a Town, we are well on our way to recovery. Most businesses are open and ready for high volume summer business. (Please come to Canmore to hike, bike, golf, dine and all the many things you love Canmore for! It is the best way to show support. We want you here!)
What is happening in the real estate market is still an important and much asked question from owners, buyers and renters, as it affects us all. The answer at this point is quite surprising.
Three weeks after the flood, the Canmore real estate market is strong and very active. It is not what many expected. It was assumed the market sales volume would slow down as we recovered from the flood. It was also assumed that buyers would be shy about buying after such a powerful and damaging display by mother nature, knowing she can get out of our control at times.
However, the buyer’s market has made its intentions clear. Canmore is an ever popular destination and buyers are buying.
Regardless of the flood, after 5 years of market correction in Canmore, it seems we have hit the bottom and are on our way to recovery in the real estate market.
Sales Since Flood
Since the flood on June 20, 2013 to today’s date of July 11, 2013 we have had 24 sales. This is the exact number of sales we had in 2012 for those same dates. It seems there is no flood related slow down at all.
There are currently 272 properties for sale in Canmore at this time. This is very narrow inventory and a drastic change from the depths of the recession felt in Canmore, when we had 400-500 listings on the market at any given time. Lower inventory numbers is healthy for both buyers and sellers. Sellers have less competition which is desirable for them. For buyers, lower inventory sometimes helps in the decision making process. Too much choice leads to indecision and delayed action on the buyers part, leading them to wait. Waiting sometime means higher prices when they are ready to purchase. Less inventory encourages buyers to make decisions more quickly, and therefore allowing buyers to take advantage of the lower prices now.
Are prices going up or down?
From Jan 2013-July 2013 the average sale price of Canmore properties is at $551,000. This is almost exactly the same (Within $2000) as those dates in 2012. However, for 2013, we are seeing a 22% increase in sales volumes of the equivalent time last year.
230 Sales Jan- July 2012
281 Sales Jun- July 2013
Should these higher sales volumes continue, It is likely we will start to see price appreciation across the board in Canmore in the remainder of 2013.
What will happen to the homes backing to Cougar Creek?
There are processes in place to asses the damage and structural integrity of these homes. Many will be repaired likely with backfill replacing some of the lot lost to erosion. Others may not be able to be saved. It is unknown at this point what will happen to these homes and homeowners. The Town of Canmore and the Province of Alberta are working with homeowners to assess the damage at this point.
Will work be done to Cougar Creek to avoid another events such as this?
Again, things are still in the assessment stage. There have been no concrete (no pun intended) plans on the future of Cougar Creek yet.
Over all, the Canmore real estate market is beneficial for both buyers and sellers. It is a fairly balanced market with lots of activity. Please feel free to contact me with any questions you have at any time, or if you are considering buying or selling a Canmore home.
Jessica Stoner -Associate Broker
RE/MAX iREALTY Innovations
(Top of page photo courtesy of Aviva West of letsgoeverywhere)
Condo Market Overview
June 13, 2013
The previous couple of years in Canmore has seen steady sales and prices. This last 12 months continues to see steady pricing, however, with a much increased volume of sales. For the first time in 5 years, we are seeing a shortage of inventory, and multiple offers are not wholly unusual for prime or well priced properties.
Stats: (For apartment style condominiums in Canmore*)
June 2010-June 2011
-Average sale price $361,000
-Average Days on Market 119
June 2011-June 2012
-Average sale price $358,000
-Average Days on Market 146
June 2012-June 2013
-Average sale price $365,000
-Average Days on Market 131
*Hotel condos, that do not allow full-time living (VA Zoned) are excluded from these stats
Hotel Condo Market Overview
Canmore and Surrounding area, June 14, 2013
(Hotel condos are for properties that are zoned VA, that does not allow fulltime
The hotel condo market in the past 12 months has increased in sales volume significantly. This is likely due to a visible drop in pricing by the sellers, urging buyers to move forward with pent up purchase demand.
The hotel condo market has several challenges.
First the zoning that does not allow full time living, reduces the potential buyers market to only recreational buyers. Recreational buyers however, are not limited to hotel condos, but look at all of the potential listings as possible purchases.
The hotel condos also have more difficulty with financing, as lenders tend to shy away from any property with a front desk. If lenders do lend on these types of properties, they tend to require 3040% down.
Lastly, the tax rate is higher on these types of properties which is a detriment.
Currently the inventory of hotel condos is quite high, with far more sellers than buyers. Sellers who price at
current market value have seen successful sales. There are many more sellers currently listed, or waiting for
the market to recover before listing. It is likely to be several years before the inventory is absorbed and the
hotel condo market in the Canmore area is once again balanced.
Currently : 60 Hotel Condos Listed
Sold June 2012 to June 2013: 37
Average sale price: $187,000
Sold June 2011 to June 2012: 12
Average sale price: $244,000