Q3 2022 Real Estate Market Snapshot
As we expected, real estate sales in Canmore and the Bow Valley picked up in September; our transition to a more normal seasonal market continues. While the market is shifting, September’s strong sales and our continued low levels of standing inventory have moved certain segments of the market back into a seller’s market.
Generally, I’m a glass half full type of person. When looking at the declines in sales of the past few months and the Q3 stats there has been a definite shift in the market. However, this is an opportunity for people looking to move within the market and have a sale of buyer’s home condition. The return of a more normal market gives everyone a bit of breathing room.
There has been some shifting in prices as we are no longer experiencing multiple offers in most situations. Prices are generally off their peak but nowhere near what markets like the Toronto suburbs are experiencing. Active listings remain below historical levels and listings have declined month over month in a month where we would expect an increase.
Q3 sales fell year over year by 31% to 131 sales: the lowest level of Q3 sales in seven years. Q3 2019 our last “normal” market, had 159 sales that year. Year over year, the average sale price for detached and semi-detached homes in Q3 rose by 31% for $1,751,000. Townhome average quarterly prices were up 38% year over year. Apartment prices rose by 13% for the same period. Tourist home and visitor accommodation use properties rose year over year by nearly 14%. For residential use properties, the past quarter had the highest average prices on record; median sale prices were also up year over year for Q3. The short-term rental use market has experienced prices slipping since peaking in Q2.
Moving further into the fall market, we don’t anticipate large volumes of new listings coming to the market with the current levels expected to continue to decline until the spring market. There is often a pre-Christmas rush as buyers look to be into homes for the holidays and ski season. This late fall period of buying has also traditionally absorbed existing inventory heading into the winter market. As the current bill for the two year ban on foreign ownership is written, Canmore and the Bow Valley will be exempt from this. We have many non-residents and expats who call the area home throughout the year, and they will still be able to call the mountain home. We will continue to look for update from the federal government as this moves forward.