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June 2024 Real Estate Update

June 2024 | Canmore Real Estate News

Spring Market Update: Bow Valley Real Estate Trends

Spring has sprung, and the real estate market in the Bow Valley is responding dynamically. Over the past few weeks, we’ve seen a surge in properties coming to market and being swiftly absorbed by strong demand. The market is firmly in seller’s territory, with residential listing inventory remaining steady at 110 properties for sale. Meanwhile, short-term rental properties have increased from 47 to 54 month-over-month.

Current Market Dynamics

For residential properties, we have just over two months of inventory, which is indicative of a strong seller’s market. Short-term rental properties are also in a seller’s market, with inventory levels rising to just over four months. These sales occurred prior to the recent Bank of Canada rate change, suggesting that buyers who have been hesitant may now feel more confident to enter the market in the coming months.

Year-over-Year Comparisons

Last June, there were 99 residential properties for sale, marking only a slight increase year over year. We continue to see a bottleneck in the market as owners looking to upsize or downsize wait for the right property to become available before listing their own homes. Across all market segments, prices have increased year over year when considering three-month trends. Our small market does lead to significant month-over-month variations, with average prices potentially fluctuating by hundreds of thousands of dollars.

Inventory and Demand

Both townhouse and apartment-style condominiums have less than two months of inventory, giving sellers the upper hand. Buyer demand remains exceptionally strong, especially in the entry-level and mid-range market segments, with many properties receiving multiple offers this past month.

For some historical context, looking back at June 2019, there were 261 properties on the market: 22 short-term rentals and 228 residential units. In May 2019, there were 49 residential sales and 14 short-term rentals. At the peak of the COVID-19 boom, there were 87 total sales in May 2021 and 72 in May 2022; compared to last month’s 66 total sales. Total active listings were 182 in June 2021 and 151 in June 2022. It will take significant changes in the market, including new construction and more sellers entering the market, to add over 100 units to our standing inventory.

Pricing Strategies

Pricing strategy remains crucial, as properties can still sit on the market despite strong demand and low inventory levels. This past week alone, there were 11 price reductions, 18 new listings, and 12 sales. Even with low levels of active competition, buyers remain savvy to market value.

With continued low inventory levels and strong demand, there’s been upward pressure on prices year over year, particularly in the residential sector. As we move forward, staying informed and adaptable will be key to navigating this dynamic market.

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