May 2022 Real Estate Market Snapshot
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There has been a slight momentum change in the Canmore and Bow Valley real estate markets over the past few weeks. The market is still very much in a seller’s market; however, month over month sales fell and active listings rose. There were 40 residential sales in April, down from 51 in March and active residential listings increase to 62 listings from 59. The short-term rental market sales decreased to 27 from 33 in March, while listings increased to 55 from 51. Year over year, residential sales are down from 70 in April 2021 and short-term rental sales are down from 38 during the same time. Active inventory has also decreased year over year for residential listings from 93 in May 2021 a 33% decrease, while short term rental inventory increased from 38 listings in May 2021.
Average and median prices are up amongst all segments of the market over the same time last year. This month, we are looking at the rise in land prices in Canmore, in particular the valley bottom. There are not many empty lots left in Canmore and as a result most of the development in the South Canmore, Lion’s Park, Larch and Hospital Hill are infill and redevelopment projects – single family, duplex and fourplex. So far this year, there have been five redevelopment lots sell; these sites have existing homes on them that will most likely be torn down for new construction. The average price for these properties is $1,486,111. In 2021, there were nine sales of redevelopment sites and lots in the same area with an average price of $850,361. This is a significant increase in values over the past year for development sites driven by demand and low levels of inventory. The convenience of the central location has driven the demand for these properties. In most cases there is an existing home on the site that can be a rental property while the new owners plan their build which helps offset costs.
Demand remains strong with generally low levels of active listings. Detached / semi-detached homes and townhouses are at 42% of the five year average for active May listings; townhouses are at 41%. As we move further into spring, we expect to see the number of new listings rising through the coming weeks. In certain segments we may start to see some pricing plateau as there will be more choice for buyers.