Canmore Real Estate 2016 Market Stats and 2017 Forecast
Happy New Year!!! We want to thank you for making 2016 a great year for us. We’re looking forward to a busy 2017; a recovering Alberta economy, strong tourism, and Canada’s 150th.
If you want to know more about the market give us a call or drop us a line.
One for the record books; 2016 was the strongest year for real estate in the Bow Valley in over a decade. With 589 sales in the MLS databases, sales were up 34% year over year; in addition to these, developers were having very strong pre-sales for projects. The total volume of sales for 2016 in Canmore and area
was in excess of $353,000,000.
The amount of homes available for sale is one of the biggest factors to note, as January inventory is currently at record lows. At the beginning of 2017, there are 132 properties listed on the MLS databases; when you factor out the 22 lots and 10 commercial hotel condominiums, there are only 100 move-in ready residential properties. For the year, overall inventory was down 6% from 2015. December sales saw their typical seasonal slowdown from the fall market, yet year over year, there was a 55% increase in sales.
Overall there was an increase in both average and median sales prices this year. The strongest growth in values was in the entry level to mid range homes. Prices as the top of the market have remained steady or soften slightly.
2016 Detached Single Family Homes:
- Average Sale Price: $948,587 ↑ .5%
- Median Sale Price: $803,500 ↓4.5%
- Total Sales: 122 ↑ 4.5%
Sales were primarily in the mid to low range of the market this year with overall sales held back by the lack of inventory. The luxury market remained soft and there were very few transactions above $2,000,000. Available homes for sale in the $1,000,000 to $1,500,000 range were well below our long term average inventory. There were some significant price increases in the lower end of the market, while the upper end held steady.
2016 Semi-Detached Duplex Homes
- Average Sale Price: $855,395 ↑6.5%
- Median Sale Price: $787,500 ↑5%
- Total Sales: 40 ↑48%
Entry level duplex sales were really strong this year with homes often going to multiple offers. We experienced strong growth in values especially in the low end of the market.
2016 Townhouse Sales
- Average Sale Price: $586,121 ↑3.5%
- Median Sale Price: $599,500 ↑15%
- Total Sales: 171 ↑55.5%
Townhome sales in 2016 were exceptionally strong and were one of the factors propelling us to a record year. The tight rental market saw a number of first time buyers entering the market and purchasing their first townhome. Values in this segment remain achievable for many local buyers. Again, this segment of the market saw some significant price growth in the low to mid-level of the market.
2016 Apartment Sales
- Average Sale Price: $434,949 ↑5%
- Median Sale Price: $393,750 ↑3%
- Total Sales: 144 ↑37.5%
Another part of the market that saw tremendous growth was the apartment condominiums. Not only were the entry level homes selling, but there have been some strong sales of the larger Silvertip, Spring Creek and Three Sisters properties. The increase in values was in the entry level segment of the market as the tight rental market saw many local first time buyers.
2016 Commercial Hotel Condominium Sales
- Average Sale Price: $287,848 ↑37.5%
- Median Sale Price: $291,250 ↑55%
- Total Sales: 92 ↑25%
The strength in sales has taken us a bit by surprise as has the run up in values for hotel condominiums. These units remain very hard to finance, however buyers are seeing cash flow with our strong tourism sector and are achieving good rental rates for these properties.
2016 Land Sales
- Average Sale Price: $707,060 ↓40%
- Median Sale Price: $631,500 ↑8.5%
- Total Sales: 20 ↑330%
2017 saw the first significant land release in Canmore in years. The Stewart Creek area of Three Sisters has a number of single family and duplex lots for sale. The decrease in average sale price this year was due to the small sample size in 2015 and a couple of very large sales. Commercial land has also been in high demand this year with a number of lots along Bow Valley Trail selling.
Overall, we expect to see another strong year for real estate in Banff and Canmore. Tourism forecasts are very strong, the low Canadian dollar is attractive for out of country visitors and buyers, and a stabilizing of oil prices will bring some certainty back to the Edmonton – Calgary corridor. The challenge that the market will face this year is inventory. There is a decent amount of new development coming in 2017 as builders have a renewed sense of confidence in larger projects. Canmore is going to look very different in 5, 10 and 15 years if the current levels of sales and construction continue.
The real estate market in the Bow Valley is still very much a local market. This past year, 77% of buyers came from Alberta for our transactions. Canmore’s growing baby boomer population is seeing more people moving up and within the market; selling their properties in the city and now calling Canmore their full time home. For the first time in eight years, the US buyer is back at 7% of transactions; we expect to see this as an increasing trend. There have been some Asian buyers in the market as well, which is a recent group of buyers for Canmore. Lastly, other Canadians continue to see the value and easy access in the Bow Valley, making up almost 9% of our buyers.
The real estate market in the Bow Valley is still very much a local market. This past year, 77% of buyers came from Alberta for our transactions. Canmore’s growing baby boomer population is seeing more people moving up and within the market; selling their properties in the city and now calling Canmore their full time home. For the first time in eight years, the US buyer is back at 7% of transactions; we expect to see this as an increasing trend. There have been some Asian buyers in the market as well, which is a recent group of buyers for Canmore. Lastly, other Canadians continue to see the value and easy access in the Bow Valley, making up almost 9% of our buyers.
