July Real Estate Snapshot Q2 2022
Wrapping up Q2 2022 and heading into the summer months, there has certainly been a shift in the Canmore real estate market. It is almost like we are back to our pre-pandemic seasonal market cycles. Second quarter sales fell to 198 from 276 in 2021; remembering that 2021 was an extraordinary year for sales. Q2 2022 sales were still 17% higher than the 10-year average. June residential sales fell month over month to 35 sales from 50 in May and by 44% year over year. Overall, June sales matched the 10 year average for sales. Short term rental use properties had a month over month sales decline to 17 from 21 in May. The segment to see the biggest month over month drop in sales were detached and semi-detached homes as seller and buyer expectations are not currently in line; this is most pronounced in the 20-30ish year old homes that haven’t had many recent renovations and are asking premium pricing.
Active residential listings rose from 92 to 109 active listings month over month. Year over year, residential active listings are down from 128 at the same time in 2021. Short term rental use property listings rose from 53 to 70 this month. Total active listings remain 27% below Canmore’s 10 year average. Even with the rise in active listings and lower sales, the market is generally still in a seller’s market. We are moving towards a balanced market; this can be noted in the price adjustments of active listings as well as the sales that are at or below the asking price. This shift in the market is giving both buyers and sellers some breathing room. Those that have a home to sell if they are moving up or down in the market now have the opportunity have a sale of buyer’s home condition.
Pricing is still much higher than two years ago. There are signs that the price increases that we have become accustomed to are starting to plateau. The headlines continue to shine on the big national markets and their significant declines. The Canmore market however remains tight on active inventory and overall demand remains steady. While we have seen price decreases in active listings and not as many multiple offers there is no sign of significant price corrections in this market yet. Well priced, well maintained and well positioned homes will continue to attract buyers. Properties that are asking premium pricing while not being updated to today’s taste are going to sit on the market.
With the lower levels of sales and gradually rising active listings, we will transition into a balanced market over the next few months in for some segments of the market. Both Canmore and Banff are seeing huge numbers of tourists this summer from both domestic and international markets. These visitors will certainly have a positive impact on the local economy and the revenues for short term rental properties. Alberta and Calgary are both experiencing significant population growth and some of these new people to Alberta will certainly choose to call Canmore home on a full or part-time basis.
