Merry Christmas and Happy New Year! We have had an exciting year with adding Louise to our team who keeps us organized and moving forward, moving into a new Canmore office and representing some amazing homes and clients along the way.
We have recently been featured in a couple of notable publications in regard to the Bow Valley real estate market
Thank you to our family, clients and friends for making 2017 such a success! We hope you have a wonderful holiday season and get out and enjoy a skate, ski or walk in the mountains.
Real Estate Market Report
The seasonality of the Canmore and Bow Valley real estate markets has returned. Unlike some major markets, we have not seen a rush to sell with the additional changes to the mortgage lending rules set for the New Year. We have seen an anticipated seasonal slowdown in sales that typically occurs this time of year. With the slowdown in sales are comes the lower inventory as there are fewer homes on the market.
The luxury market has returned to the Bow Valley. There have been two recent sales in the $4,000,000 mark as well as sales over $2,000,0000 have nearly tripled over last year. Values in detached and semi-detached homes seem to be holding steady and the upward pressure on pricing in this segment has eased somewhat. Currently, there are 63 detached and semi-detached homes on the market compared to 47 at this point last year. This segment of the market has moved back into balanced territory this month.
Year over year, the overall level of properties on the market is up about 10%; however, month over month inventory is down 10%. November experienced a significant dip in overall sales volumes with just 29 sales; a number we would typically expect in January. Much of this is due to the low level of inventory.
Both apartment and townhouse type properties have now been in seller’s market territory for a year. Without significant new inventory coming to market, we expect to remain in a seller’s market through to the spring market.
The short-term rental market (visitor accommodation and tourist home) remains strong moving into the winter season. This is a segment of the market that has recovered much more quickly than we anticipated and has seen some phenomenal growth in values. With a couple of new purpose-built hotels coming to market as well as gross revenue not increasing to the same level as sale price we do not expect to see the same large increase in values in the coming year. The new hotels will absorb some of the demand that the hotel condo market is serving. As well, the purpose is to generate revenue and there is a sweet spot for each complex.
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