Canmore Real Estate News | Q2 2023 and July Update
It is hard to believe that we are already halfway through 2023. Much has happened in the past six month for Bow Valley real estate. There has been some great headway in creating more housing throughout the Valley: The Town of Banff is looking at changes to their land use bylaws to increase density, allow more suites and relax parking requirements. The MD of Bighorn has passed third reading on the Exshaw Mountain Gateway which will bring much need single family, duplex and multi-unit residential to the community. And Canmore council is working on a housing action plan and the Province has gifted 2.3 hectares of land in the Palliser area.
Heading into July, Canmore and the surround hamlets have 143 total active properties for sale; 36 of those are short term rental use and 5 are land. Our low levels of standing inventory are well below long term trends; the 10 year average is 239 listings and the 5 year average is 222 total listings in July. With 102 active residential properties currently on the market, listing levels are slightly below last July’s 109. Overall demand for both residential and short term rental use properties remains very strong. Canmore and the Bow Valley continue to be a very desirable place to call home, vacation to or invest in.
Second quarter 2023 sales fell year over year after the record breaking first half of 2022. Total residential sales fell to 98 from 128, while short term rental sales fell to 48 from 68. The shift in sales can be attributed to a couple of factors: Firstly, overall low levels of inventory where demand is outstripping supply; there are not enough of certain types of properties coming to market. Secondly is the difference in current interest rates vs last year; some buyers have been priced out of the market. Third is affordability; prices overall in the area remain amongst some of the highest in the country. The overall majority of subsegments of the market remain in seller’s market territory with demand being driving locally, provincially (Calgary-Edmonton corridor), nationally (Southern Ontario and the Lower Mainland in BC) and by expat Canadians.
With the diverse types of properties and overall low number of sales in each category, pricing trends can vary dramatically from month to month and quarter to quarter. Q2 2022 – 2023 average prices were up 1.7% for detached and semi-detached homes; up 1/10 of a percent for townhomes, up 13% for apartment condominiums and up 15% for short term rental use properties. However, the median price for detached and semi-detached homes fell year over year by nearly 10% and almost 4% for townhouse properties. The decrease in the median price is likely reflected in the type of properties selling this past quarter.
Heading into the summer months, both Canmore and Banff are seeing a return of pre-pandemic visitation; the streets, restaurants and trails are bustling with people. Historically, we will start to see more properties coming to market late August early September as we move into the fall market. However with the continued strong demand, we do not expect to see any significant increase in the standing active inventory levels.