Jessica Stoner, RE/MAX Real Estate Agent

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. 

210-155 Crossbow Place, Canmore. $599,000

Bright and Open 2 Room 2 Bath Home with Mountain Views. Get ready to make your dream of owning and living in the Canadian Rocky Mountains a reality and embrace your brand new life here in Canmore. Whether you are looking to retire, or just have that perfect little mountain escape home, this bright and open space is move-in ready. The 1 bed plus den or 2nd bed with 2 full baths is all about the stunning, south facing mountain views and is looking for new lucky owners. You will fall in love with the gargantuas amenities building that includes an indoor pool, outdoor hot tub, gym, theatre, games room, chalet style lounge & library, board room, and event centre. Crossbow Point is a residential only 40+ owner building (see photos for details). There are 4 guest suites in the complex that owners can rent for your guests. The condo fee also includes all of your major utilities including electricity, gas, water/sewer, and heat. 1 titled parking spot, and 1 assigned storage. Now is the time to make it happen and make the move to Canmore!

218-106 Stewart Creek Landing, Canmore, AB (For Sale $645,000)

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.

---

---

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.

Transcript:

Canmore Market Update Janurary 2023

2022 was a pretty wild ride in Canmore real estate. 

I’m Jessica stoner with the Jessica Stoner Real Estate Team in Canmore Alberta with RE/MAX Alpine Realty. Here at the Jessica Stoner Real Estate Team, it’s about you.

That’s why I am sharing this market update with you an overview of 2022 and 

what that means for us in 2023. 

As we know, the pandemic created a huge demand of buyers. It also created a heightened number of sellers leading to a remarkable increase in the number of sales in Canmore and the Bow Valley.  Though the buyers were still keen, by 2022, most of that heightened inventory had already been sold. 

So let’s look at the stats.

In 2021 we had 641 sales in Canmore. In 2022 we only had 397. That’s a 38 decrease in the number of sales. 

If there was more inventory, the buyers would have bought it. 

Now, the  topic of most interest,  sale prices.

Sale prices in Canmore continue to increase. In 2021, the average residential property ( this is all the residential property, not just single-family homes)  the average sale  price was $919,000. 

In 2022, it was $1,075,000. 

To clarify, not all properties increase equally. They didn’t all increase 17%. Some increased much more, others have had a slight correction down from  the peak of the market prices.

In 2023, we have low inventory. On the market we have 65 listings right now, and our normal balance Market is about 200 to 250 listings. So we have a ways to go before we get to a balanced Market. 

We are all hoping to see an increase in inventory as we head into the spring of 2023.

For the remainder of 2023, we are expecting to see: 

– continued buyer’s demand

-low but growing inventory

-hopefully some downward pressure on the

-interest rates 

and continued glorious Mountain living in Canmore!