The surging fall real estate market set yet another record for sales volumes in October. There were 100 sales last month, the most MLS transactions ever recorded in this market. With this incredible number of sales and declining active listings, the market has moved well into seller’s market territory with 2.59 months of inventory.
In April, we did not expect to see a 733% increase in sales volumes come October. Year over year in October, sales are up 59% while active listings are up 7%. Year to date, sales are only up by three transactions (0.6%) from the same period as last year. While the incredible sales volumes are record setting, much of the strength of the market is a result of pent up demand. As we expect when transitioning into the late fall market, we are starting to see a decline in active listings on the market. We do not expect November sales to be another record but do expect strong sales volumes.
Heading into the winter market, we expect to see continued strength in the market; a combination of demand, changing lifestyles, restrictions on international travel, and low interest rates. The one factor that might hold back some sales is a lack of inventory. While there are over 250 active listings on the market, within certain segments there is very limited active inventory.
The short-term rental market may even see a stronger winter season as domestic travel increases to winter recreation destinations. Generally, the revenue for these units through the winter is not a strong as the summer months.
Sales in Banff even picked up with six MLS transactions in October. Inventory is starting to decline as properties that were on the market through the summer either sell or come off the market for the winter.
