Happy New Year! Let’s take a look at what the Canmore market did last year and what that means for 2022.
Jessica Stoner, RE/MAX Real Estate Agent
Find Your Place In Canmore Alberta
October 2021 Market Update
July 2021 Market Update
Mountain FM Radio Interview (July 2021)
May 2021 Canmore Market Update
December 2020 Market Update
The Canmore market has seen some dramatic shifts in 2020.
The first Covid lockdown in February 2020 resulted in a sharp decline in sales and a 5% correct in prices. However, instead of a continued slowdown when things opened up again, we experienced the opposite, with greatly increased buyers demand and inventory to match.
Now in December 2020, in the midst of a 2nd Covid lockdown, we are looking toward 2021 to anticipate the likely market factors that will affect real estate in the new year.
2021 Outlook
It is expected that we will see a sharp rise in prices in 2021 and 2022 in Canmore. We are unlikely to see a major correction for many years to come.
This is due to several factors.
- Covid created demand for 2nd homes in recreational areas for vacation homes. (Alberta’s don’t know when they can travel to United States and are not exactly welcome in BC. Canmore is pretty much the only recreational location in Alberta. It is close to Calgary and the closest town to the ski hills one can buy in. )
- Covid created demand for 2nd homes in recreational areas for part-time work from home. (It seems some form of work-from-home is here to stay. There has been an influx of buyers buying property in Canmore to spend more time at, as they can spend half of the time here now working from home, instead of just visiting occasional weekends.)
- Cost of lumber and other construction materials have increased about 4X the cost of a year ago. This is not expected to correct for at least a couple of years, and is adding significant costs of new construction in Canmore. As we have low inventory in resales at this time, new home construction is taking up the slack in sales, with expected increasing prices.
- Though we had a very active market for most of 2020, it was a balanced market, with enough inventory to satisfy buyers. We are starting to see the inventory dry up, and buyers demand remains high. This will also lead to an increase in price.
- Future retirees, who were the dominant driving buyers market prior to Covid, continue to purchase their future retirement homes. This market recognizes the increasing competition in the finite market of Canmore, and buying with more urgency now for their retirement in 3-7 years.
- The current buyers are purchasing with genuine use in mind. In past markets, there have been international buyers and speculation investors purchasing for the purpose of buying to flip. We see almost no international buyers nowadays and very few that are buying with speculation in mind. Almost all buyers now intend to use the homes themselves as a full time home, 2nd home or future retirement home, giving genuine value to the homes and the prices paid.
- Canmore has some new construction slated, but it is limited and there is a finite footprint to what can be built. There are only a handful of new phases that can be built in town before buildout.
Overall, almost all factors lead us to believe that the Canmore real estate market will continue to increase in buyers demand and appreciating price point.
Special Zoom Event, Q&A Canmore Real Estate
Special Zoom Event – April 11, 2020
Canmore Real Estate Q&A
REGISTER
We are hosting another online Zoom Q & A session regarding the Canmore real estate market this Saturday April 11, 10:00 am (MST). You are welcome to ask any questions that will help you better make your real estate decisions.
I’m Jessica Stoner with the Jessica Stoner Real Estate Team in Canmore, Alberta. I’ve been a Realtor in Canmore for 22 years and have been through both up and down markets.
On Saturday, will cover how the Canmore market has behaved over the past couple of weeks and months compared to the same time last year, as well as revisit historical market activity from similar economic interruptions in the past.
Our Mortgage Specialist Greg Foss, with Mortgage Connections will be here again to answer current lending questions.
The market is a moving entity and we want to ensure you have the most up-to-date information at this time.
Feel free to join us this Saturday April 11th, at 10:00am (MST)
FAQ’s During COVID-19 Canmore Real Estate April 2, 2020
Q-Is is still acceptable to list my home or view homes for sale during this time of Covid-19?
A- Yes, Real Estate Services are deemed Essential Services by the Province of Alberta. Purchasing a home or selling ones home is often a necessity for many different reasons, and we continue our services to ensure you can move forward with your real estate needs at this time.
Q-Is it safe to list my home?
A– We are working with sellers to determine protocols for the listing of your home, and how to safely have people access your home.
Q-What protocols are in place for a showing?
A- At the minimum, we ask:
Buyers-
-virtual showings to be complete if possible before in person showing
-buyers do not touch anything in home
-buyers and agents travel in separate vehicles
-only agents touch door knobs and light switches if necessary, and nothing else
-children not to accompany parents during showing. (Parents may need to view one at a time, if children are in tow)
-only essential individuals to a transaction to view home. (No family members or other individuals to accompany showings unless necessary)
-hand sanitizing or washing before and after showings for all parties
-ask buyers if they have symptoms, have traveled in past 2 weeks or been in contact with someone with Covid-19 in past 2 weeks and ask they please delay showing or agree to a virtual showing instead.
Sellers-
-immediately tell us if anyone in the household has symptoms or have traveled in the past 2 weeks.
-before showings, leave lights on and doors open so less contact with home is necessary
-sanitize as much of the home as possible
-vacate home if possible during showings
Buyers and Sellers may have additional requests for safety protocols and we will do everything we can to accommodate buyers and sellers requests.
Q-Are professionals such as home photographers and home inspectors working during this time?
A-Some are choosing to decline work now, and others are still providing services, with safety protocols in place. We try to accommodate all service providers requests for safety protocols as best we can.
Q-Are lawyers working this time to close real estate transactions?
A-some lawyers are temporarily declining new business until the social distancing requirement is lifted. Most lawyers continue to work with additional safety protocols in place. Transactions can take longer to complete as lawyers struggle with the legal requirements to meet with their clients in person to sign land transfer documents. The possibility of one party of a transaction requiring self isolation, can delay signing of documents by two weeks. Delays during this time should be anticipated and expected.
Q-Is Land Titles offices in Alberta operating during this time?
A-Yes Land Titles offices in Alberta continue to operate. There is a slight delay in processing times, but title transfer operations continue.
Q-What happens if a home is tenanted and we can’t evict as per new Provincial statement?
A-There currently is a moratorium on new evictions issued to tenants due to nonpayment of rent in Alberta until after April 30, 2020. There is no change to the legal enforcement of the end of a lease or Notice to Vacate, legally issued to a tenant for reasons allowed under the Landlord Tenant Act.
Q-What happens if a home I’m buying had someone in self isolation on closing date?
A-This situation is a possibility that all buyers and sellers during this time must be aware of. Every situation will have to be accessed and dealt with on an individual basis. Often buyers and sellers can agree and sign an amendment for a later closing date. All parties have to be aware that this could affect other sales and purchases associated with this transaction as well. Open and frequent communication with all parties, realtors and lawyers is the best way to find a workable solution.
*LIVE ONLINE EVENT* Saturday March 28 10:00am MST
Question and Answer- Canmore Real Estate
I am inviting you to an online “Canmore Real Estate – Question and Answer Discussion”
This Saturday morning, March 28, 2020 10:00 MST.
You are welcome to ask questions about Canmore real estate, the market, or anything you feel might affect you. Owners, Sellers, Buyers and prospective Buyers are all welcome to take this chance to get some answers that might help determine the best course of action for you at this point in time.
We know these are tough times for everyone. Myself and my team, along with Mortgage Broker Greg Foss, will be answering your questions to the best of our ability.
We’ll share some past stats and patterns regarding real estate sale and prices after other market upsets. (Financial Crisis in 2008, Flooding in 2013, even how SARS affected us in 2003)
Greg can answer questions about the current interest rates, stress tests and mortgage approvals.
I am Jessica Stoner and have been a REALTOR in Canmore for 22 years and have been through markets both up and down. I know there are so many questions right now. I will do my best to answer them, if I can.
Take care, stay healthy and talk to you soon.
Jessica
“In the middle of difficulty lies opportunity”
― Albert Einstein
Coronavirus Update March 2020
Coronavirus, Recession Whispers, and Oil Prices, Oh My!
March 11, 2020
Hi there,
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.
Conclusion:
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 , team@jessicastoner.ca , jessicastoner.ca
“In the middle of difficulty lies opportunity”
― Albert Einstein
November 2019 Market Update
The c
urrent market in the Bow Valley is active and healthy. The area is minimally affected by the oil and gas woes the rest of the provinces’ real estate markets are experiencing.
For the last couple of years, the market in Canmore and the Bow Valley have been weighted in the seller’s favour, with high buyers demand and low inventory.
In the first week of November 2019 the market continues to be more balanced. There is still high buyers demand, but with increased inventory, buyers have some choice and less pressure to settle on a higher than market price offer. Prices have plateaued over that past year or so, but the number of Days on the Market before a listing sells has decreased significantly.
The entry level and mid-level price points still tend to sell in a timely manner. Some of the higher price points take a bit longer to sell and more conservative pricing tends to be effective.
2019 YTD
Total Market Average:
– Sale Price: $711, 080
– Days on Market: 38
– 393 total sales
2018
Total Market Average:
– Sale Price: $710,858
– DoM: 65
– 478 Total Sales
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