Canmore Market Update April 2025

What is happening in the market?

1st Quarter 2024 vs 2025 (Residential – Canmore)

• High Buyer and Seller activity -similar to this time last year
• Number of Sales and Days on Market similar to this time last year.
• Currently -Inventory Balanced
• Average Sale Prices – significant increase from this time last year

Interest rates 

• Lower interest rates from this time last year, is creating increased buyer activity

Are Prices Going Up or Down?

• There was a noticable18% average sale price increase in the past year. (Canmore-residential)
• Avg sale price 1st Quarter 2024=$1,241,000
• Avg sale price 1st Quarter 2025=$1,475,000 
• Avg number of Days on Market 2024- 67
• Avg number of Days on Market 2025- 68

Balanced Market

Though the market is active, the buyers and sellers activity is balanced for now.

For Sellers – As there is a healthy number of new listings entering the market, accurate pricing is wise at this time. This is not a market to push the envelope with pricing.

For Buyers – The increased inventory entering the market is creating more choice for buyers. Buyers should still be aware that the lower price points, as well as the more desirable properties in all price points, are seeing strong buyer competition and swift sales.

Expectations into remainder of 2025.

The expectations is that Canmore real estate will remain in demand. Buyers and Sellers are expected to remain active.

Unknowns

The level of unknown remains high. The is prompting both Buyers and Sellers to action. Some Sellers are selling due to desire to limit financial responsibilities. Economic uncertainty is leading some Sellers, to take action now. Some are selling vacation homes, to limit over extending themselves. Others are selling in town and moving to more affordable towns.

The unknowns are spurring buyers into action as well. We are seeing buyers uncomfortable with stock market volatility, purchasing real estate as a more secure investment. The buyers taking this action tend to be be purchasing vacation homes or future retirement homes in the area.

Last Thoughts

The Livability Tax recently implemented in Canmore, (an additional property tax on non-full time home owners) has created some effect to date. Some 2nd home owners who can not afford the significant increase in their property taxes, and others who feel the tax is inappropriate, have decided to sell their homes. This may have added to the increase in inventory on the market at this time.

Despite the increase in inventory, prices continue to appreciate.

January 2025

Canmore Market Update January 2025

What is happening in the market?

• Buyer activity just starting to gain traction after minor slowdown in 2024
• Inventory still on the low side

Interest rates 

• Interest rates have eased to a level that’s sparking renewed buyers activity.

Are Prices Going Up or Down?

• There was a healthy 8.5% average market price increase in the past year.  
• In 2025, Days on Market is slightly longer at 52 days to sell a home vs 43 in 2024

Balanced Market

It is still a balanced market for now.

For Sellers – There is low competition and buyers momentum is building. Now is a good time to sell.

For Buyers – Limited options for sale, though the buyers market isn’t in full swing yet. May be worth moving forward sooner than later.

Expectations into 2025.

It is expected that the pent up demand from buyers delay in purchasing last year, paired with lower listing inventory, will create stronger competition, higher prices and likley more multiple offer situations.

Unknowns

Where do I start? We don’t know what is happening with our Canadian leadership at this point. We are unsure how the new US government will affect the Canadian economy. We can only guess if Alberta’s oil and gas industry will be impacted and how that might result in economic changes in the province. Despite these unknows that could affect the Canmore market, there are still equally strong factors specific to Alberta that

Factors pointing to strong Alberta economy in 2025

• Population Growth- From 2021 to 2024, Alberta sawnet positive inter-provincial migration. More people are moving to Alberta from other provinces.
• Calgary and Edmonton’s growing tech and diversified economy
• Lower interest rates
• Continued uban to small town trends
• Alberta’s potential passenger rail plan continue to advance through preliminary phases
• Several extensive new data centers are beyond the site selection stage in Alberta are at various levels of proposal, planning and permitting.

What is happening in the market?

• Slower activity in 2024
• Buyers delaying purchasing – waiting for additional interest-rate cuts

Interest rates 

• Two years leading up to 2024 saw steadily increasing interest rates. 
• In 2024 this trend reversed, with several interest rate cuts. 
• It was expected that declining rates would boost buyer activity in Canmore.
• Contrary to expectations, many buyers chose to wait for further reductions before purchasing.

Are Prices Going Up or Down?

• Despite slower buyer activity,  the overall average market price has increased by 10% in 2024. 
• Due to slower buyer activity, combined with typical seller activity, lead to a longer listing period and higher inventory.

Balanced Market

Good news for Sellers – Price points generally continue to increase, enhancing owners investments.

Good news for Buyers – More properties to choose from and less time and competitive  pressure when purchasing.

Who is Buying?

The leading Canmore Buyers are:

• Albertans
• Families with children seeking more space
• Buyers of designated vacation rental properties
• Future retirees acquiring vacation homes to transition into full-time residences upon retirement

Government Policies Affecting Canmore Real Estate

How are new Municipal, Provincial and Federal policies affecting Canmore Buyers and Sellers? 

Federally

The Prohibition on the Purchase of Residential Property by Non-Canadians Act is currently in place restricting non-Canadians from purchasing residential property in Canmore. (and many areas of Canada) 

• Has had no little to no effect on the Canmore market.
• The number of Non-Canadian purchasers in Canmore is typically low.
• The majority of buyers in Canmore are Albertan, with few from out-of-province. 

Provincially

• There’s been an increase in land title registration fees in Alberta. 
• The cost to register a new Land Transfer or Mortgage has more than doubled. 
• Any increase in the cost to purchase real estate in Canmore can be painful for buyers

That being said:

• Even with more than a twofold fee increase, Alberta’s land title registration fees are still the lowest in Canada
• -In addition, Alberta continues to successfully resist a land transfer tax which can add up to several thousand dollars per transaction. 
• Albertans are still protected from this considerable financial burden to purchasers in other provinces.

Municipally

The Town of Canmore has passed a bylaw allowing the implementation of an additional tax tier to be charged to non-permanent home owners at a higher rate. 

• Has prompted an emotional response from part-time home owners, to the prospect of a two tier tax system for non-permanent homeowners in Canmore. 
• We are not aware of any second homeowners planning to sell their home to avoid a higher tax rate.

The Town of Canmore implemented a new policy that charges the higher Tourist Home tax rate for all Tourist Homes, even if utilised as a full time home. Owners may choose to remove their Tourist Home Designation permanently to avoid paying this higher tax rate, and lose the ability to rent the property short term. 

• The prevailing Tourist Home owner’s reaction to date leans towards embracing the grandfather clause and ensuring their homes remain Tourist Homes. 
• We have not heard of any owner willing to remove their Tourist Home designation to accomplish the lower tax rate, as market values for Tourist Homes are higher than an equivalent residential home.

What is Expected in the Near Future?

In 2024, the market has remained somewhat subdued. Now with three interest rate cuts this year—the most recent being a full half-point adjustment—an acceleration in activity is expected, likely later in 2024 and potentially in early 2025. 

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Q&A Zoom Session Recording- June 1, 2023

Monday May 1, 2023 – 6:30pm, Zoom

There is a new tax filing obligation in effect, filing deadline April, 30 2023. This may affect you!

Who does this new tax affect?

An affected owner includes: (but not limited to)

• Non-Canadians owning residential property in Canada
• Canadians owing a residential property as a trustee of a trust
• Canadians owning a residential property as a partner of a partnership
• A corporation that is incorporated outside Canada
• A Canadian corporation whose shares are not listed on a Canadian stock exchange
• A Canadian corporation without share capital

This may include:

•Husband and wife ownership may be considered a partnership

•Properties purchased in Holding Companies or Incorporated Businesses

•Properties purchased personally with a Bare Trust Agreement.