Starting price for a two-bedroom condominium: $225,000
Alberta’s strengthening economy has bolstered sales of recreational properties in Canmore. After a five-year lull, purchasers are finally making their moves, taking advantage of the thinning selection of single-detached homes and condominiums
available at virtually every price point. Pent-up demand and softer values have contributed to the upswing.
Four hundred and thirty-three homes changed hands between May 2012 and April 2013, a 32 per cent increase over the 328 units reported the 12-month period prior. Average price has remained relatively stable at $550,000 year-over-year, in spite of the uptick. Yet, values are expected to rise in the days and months ahead given the sheer volume of sales. The price of a two-bedroom condominium in Canmore reflects some of that upward pressure already, now starting at $225,000, up from last year’s rock bottom price of $195,000.
Young families and retirees lead the charge for product in Canmore, with single-family homes priced between $500,000 and $1 million and condominiums ranging from $250,000 to $500,000 most sought-after. The most expensive sale so far this year was a 5,000 sq. ft. timber frame retreat, close to the river, with a price tag of $1.925 million.
Builders are demonstrating their confidence in the overall market, with new construction underway in town. From single-detached homes to multi-unit residential (duplex, fourplex), demand now exists across the board. Financing has presented some challenges, with the hotel/condominium sector most impacted by changes to lending policies.
Income-producing properties that are generally part of a rental pool are meeting with resistance from banks and lenders, as they move to mitigate their risk in the market. Purchasers travelling from Calgary, Edmonton, Red Deer, and Fort McMurray represent the lion’s share of activity, although there have been some out-of-province sales.
Demand is fairly evenly distributed, with no specific area experiencing a surge. The north side of town tends to attract younger families with kids, while the full-on mountain resorts—such as the Three Sisters and Silver Tip—are drawing purchasers who seek solitude and scenery. The remainder gravitate toward the downtown core where shops and restaurants are within walking distance.
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