The Summer Lull?
We typically see a slowdown in real estate sales as we come into the summer months. This year has been much more pronounced than in the past few years. Sales in July pulled back to 38 sales from 55 transactions in June. There has been a slight increase in the number of properties for sale as we have risen to 222 active listings. This is a month over month increases of 10% however is still 21% lower than this time last year. We would think that some of the lower sales are a result of the low levels of inventory. Overall, the market remains just inside sellers’ market territory and is trending towards a balanced market.
Detached and semi-detached homes have risen into buyer’s market territory for the first time this year. This number is skewed by the high values of homes in Canmore and the amount of homes listed in the top end of the market. On a three-month average, the median sales price of detached and semi-detached homes in Canmore and area have risen by $215,000 over this period last year. The average sale price for detached and semi-detached homes this past month was $1,090,000 and the median price was $938,000.
Townhouses on the three-month average sales price have increased 7% year over year. Sales were flat month over month and inventory remains stable. The average sale price increased again this past month to $712,000 with a median sale price of $664,000.
For August, we expect sales to start to pick up for the fall market in the last week of the month. This will result in a softer number of sales than we have grown accustomed to over the past year. As September sees the real start of the fall market we would expect to see sales rise again and inventory remain in the low 200s for number of properties for sale.
With the changes the Bank of Canada has recently made and slowing markets in Toronto and Vancouver it will be interesting to see what happens with the Canmore market. We don’t expect any significant slowing in sales expect perhaps to entry level as mortgage rates increase. As the overall Alberta and specifically Calgary markets recover, we expect the positive trickle down to come to the market in the Bow Valley.