June 2022 Real Estate Market News
Turn into the news and it seems like everyone is talking about a shifting real estate market in Canada. We’ve seen a bit of a shift in the past few weeks, however some of this could be the seasonality of the market. Month over month sales of residential properties were up 27% in May to 51 sales: up from 40 in April. Short term rental use property sales fell month over month to 21 transactions from 27 in April. Remember, the real estate market has been on hyperdrive for over a year and there had to be a shift at some point. Year over year residential sales are down 16% for the month of May. The biggest shift in the market over the past few weeks has been the new listings coming on the market; month over month active residential listings are up 30 units to 92 listing. Year over year, active residential listings are down 28% from 128 in June of 2021.
The increase in sales in May is correlated to the new levels of listings that have come to the market. Demand remains very strong with the real estate market remaining very much in seller’s market territory. The demand continues to have upward pressure on pricing; the three-month average sale price of townhomes is up 25% year over year. Detached and semi-detached homes three-month median sale price is up 24% year over year. Apartment condominiums three-month average price have declined year over year by 3%; some of this decline can be attributed to the new iPlace one-bedroom suites that have all sold recently.
The higher levels of active inventory are still below our historical norms for this time of year. However, these higher levels of listing are giving buyers more choice, the opportunity to potentially negotiate and have some conditions on their purchase. There have been several price adjustments over the past few weeks as sellers are realizing that they need to be strategic in their pricing and there is more than likely competition for their property.
The continued rise in interest rates certainly will have some effect on the Canmore real estate market especially amongst first time buyers and those financing short term rental properties with non-conventional mortgages. The current global geopolitical landscape and stock market volatility will also have some impact on the market as some buyers may take a wait and see approach. For buyers “looking for a deal” we haven’t seen any indication of this. The last significant dip was spring 2020 and that only lasted two months. Anecdotally, the Canmore real estate market continues to draw buyers from across Canada and around the globe. We continue to see strong interest from Calgary, Edmonton, the GTA, the Lower Mainland of BC and the US.
Heading into the summer months, we expect to see a continued rise in active listings and sales to remain steady. The market may slowly shift to a more balanced market as we move into fall if the new listings are not all absorbed in a timely manner.
