2019 Sales by the Numbers:
Breakdown by Property Type:
10% fewer Canmore hotel condos changed hands in 2019 than the year prior but this segment still accounted for 17.7% of total home sales. Demand for these units remains strong but a lack of "good" listings coming to market has hampered buyers. The general consensus among owners seemed to be that they felt this "wasn't the year" to sell while revenue from nightly rentals remained strong, so there was no real urgency. Stoneridge Mountain Resort saw the most condos change hands with 13 units trading on the market although, the majority of those trades belonged to one seller who is unloading a portfolio of condos. Solara Resort and Spa took the second spot and Blackstone Mountain Resort was the third most popular condo complex.
The average sale price of a full ownership, 2-bedroom condo rose slightly in 2019 from $477,466 to $479,277. With the lack of available inventory, it is not surprising that the average days on market dropped significantly from 56 days in 2018 to 27 days in 2019, meaning that there are still plenty of buyers waiting for the right one to come along despite the rising prices.
As is normally the case, residentially zoned condos made up the largest portion of Canmore home sales in 2019 accounting for just over 25% of all real estate trades. This market segment also happened to account for the largest decrease in year-to-year sales with 20% fewer transactions than in 2018. Typically, the types of buyers getting into the condo market are either first-timers or those who are looking for a second home or vacation property. Given the political/economic climate in the province it makes sense that those buyers may take a step back from purchasing a condo in Canmore this past year.
The average sale price for a condo in 2019 was $494,899 which, is up roughly 1/2 a percentage point from $492,612 in 2018.
Another indicator worth pointing out is the List Price to Sale Price ratio. In 2018 condos sold for, on average, 98.58% of their list price whereas in 2019 that number was down to 97.79 which, signals a slight decrease in competitiveness in the market making it a good time to buy!
Despite the softening in the market of lower priced properties, townhomes saw no change in the total number sold and in fact, increased their market share to 24% of all Canmore real estate sales. One possible explanation for this trend is the mortgage regulations that were introduced by the federal government last year. As a result of stricter borrowing rules, many buyers had to hold off on their purchase in 2018 to save up a larger deposit and it is likely that those buyers were able to go ahead and get into the market in 2019.
The average price of a townhouse rose from $687,680 in 2018 to $705,951in 2019 or, around 2.7%
Also known as "Semi-Detached" homes, half-duplexes saw a relatively big increase in popularity and market share in 2019. Up 10% in the total number sold, many of these are luxury, new construction properties bought as a second home. While numbers were up, the average sale price was actually down approximately 2.8% which, in my experience, is exactly what investors were holding out for. After seeing prices rise significantly in the past 3-5 years, and given the current economic conditions, most observers expected the prices of luxury properties to soften somewhat. In general, the confidence of home builders producing these homes remains high.
Single Family Homes
As with other higher priced market segments, single family homes saw a slight increase in the total number of units sold in 2019. 89 Canmore homes changed hands on MLS compared to 87 in 2018... a somewhat insignificant increase however with fewer properties selling in total this means that freehold properties accounted for 20% of the total Canmore real estate market. Average sale price was up 1.9% from $1,138,044 in 2018 to $1,159,475 in 2019. The average amount of time a home took to sell in 2019 was also up from 77 days on the market in 2018 to 84.
The Canmore luxury homes market continued to emerge after a strong showing in 2018. Keeping pace with last year's numbers, 7 properties sold over the $2,000,000 mark and 127 Cairns Landing took top honours with a final sale price of $3,900,000. The 6200 square foot behemoth shown below was originally listed at $4,500,000 in August of 2018 and spent 171 days on the market.
2020 Canmore Real Estate Forecast:
After seeing the market soften somewhat in 2018 and 2019, some buyers and sellers took a bit of a step back to see how things would play out which, resulted in fewer new listings coming to market as well as less competitive negotiations. The economic and political landscape in Alberta is starting to show signs of stabilization and in general, many Albertans are cautiously optimistic that the worst is over. In the neighbouring Calgary real estate market, there is evidence of recovery and although the two markets are not connected, many Calgarians either own real estate in the Bow Valley or they are looking to move here. The prospect of selling their home in the city has been a daunting task over the past few years but is now becoming a little more optimistic.
The Canmore real estate market has undergone significant growth in the 5 years prior before starting to level off in 2018, followed by a similar trend in 2019. Despite the reduction in sales volume, property values still rose, on average, approximately 2% across all property types and is expected to continue doing so. The days of property values increasing 10% in one year are likely not to return anytime soon but property owners remain very confident and there is a seemingly never-ending demand from buyers for Canmore homes. Investors and other property owners are going to realize that market growth in Canmore has stabilized to more realistic gains and that 2020 will be just as good a year as any to sell. Similarly, buyers who were hoping to capitalize on the big year-to-year gains in their property values may be less inclined to buy into the Canmore market. As a result, we will continue to see the trend from a seller's market to a more balanced, healthy market.
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Posted by Ben Maize on