The spring market has come early and there is no mistaking it. It may have been a long and cold winter but there is pent up demand for homes in Canmore, Banff and the Bow Valley.
If this first quarter is any indication, Canmore and the Bow Valley’s real estate market is headed for another record year. Year over year, first quarter sales have jumped 16% to 143 transactions. Typically, Q1 and Q4 are the slower quarters for real estate and things heat up for the spring, summer and early fall markets. Year over year, March sales jumped 43% to 60 monthly sales; the best March since 2006.
We are experiencing some seasonal relief in supply as more homes are coming to market; there are currently 174 active listings with 133 of those being residential properties; up from 145 last month. Between March of 2016 and this year, overall listing inventory has declined 36%. With the limited amount of homes on the market, we believe some of the sales volume is being held back. For active listings in Canmore and area, 30% are over $1,000,000; while 47% are in the mid-range $500,000 to $1,000,000. The lack of supply in the entry and mid-range of the market is leading to consistent multiple offer situations.
When broken down by type, almost all segments of the market are seeing an increase in both median and average price. Apartment condos are hold steady and only seeing price gains in the lower end of the market.
|Q1 2016 Avg SFH||$922,750||Q1 2017 Avg SFH||$1,039,539|
|Q1 2016 Med SFH||$775,000||Q1 2017 Med SFH||$868,000|
|Q1 2016 Avg Town||$558,796||Q1 2017 Avg Town||$692,236|
|Q1 2016 Med Town||$555,000||Q1 2017 Med Town||$678,000|
|Q1 2016 Avg Apt||$470,746||Q1 2017 Avg Apt||$463,384|
|Q1 2016 Med Apt||$422,500||Q1 2017 Med Apt||$425,450|
As we get into the spring real estate market, we do expect to see more properties coming to market and inventory levels reach the 190 range. This is still significantly fewer homes on the market than we have typically seen over the past four or five spring markets. In the market overall, there are just three months of product to be absorbed. This puts us into a sellers’ market. The consideration about this are the number of listings and transactions in a certain price point. The luxury market is still a buyers’ market while the rest of the market is well into a sellers’ market.
Our outlook for Q2 and Q3 are continued strong sales on par with 2016 and upward pressure on pricing in most segments of the market.