What happened in the Canmore real estate market in February?
In what is turning out to be a somewhat slow start to 2018, February was a quiet month for real estate sales compared to January which, saw average action in the market. In a typical year the average number of property sales in February is around 28 - this year however, only 16 homes changed hands. At the time of writing this article, there were a mere 122 residential properties actively for sale in a town that is already starving for real estate inventory. The old-timers I share an office with at Century 21 Nordic tell stories of their "glory days" when there may have been as many as 600 properties for sale at any given time in town. Well folks, those days are long gone!
One thing that has remained consistent in the past 2 years is the never-ending demand for Tourist & Vacation Zoned condos that can be rented out nightly using sites such as AirBnB. Of the 16 total sales for the month of February, 6 of those were condos zoned for vacation use only and cannot be lived in for longer than 28 days. Of those 6 sales, 3 of them sold for 100% or more of asking price and all 3 were great investments, including:
- 112-187 Kananaskis Way (Solara Resort and Spa) | Listed: $399,000 | Sold: $405,000
- 119-140 Kananaskis Way (Mystic Springs Hot Pools and Chalets) | Listed: $414,500 | Sold: $414,500
- 118-1000 Harvie Heights Road (Banff Boundary Lodge) | Listed: $250,000 | Sold: $266,000
The Canmore.net team secured 2 of those 6 condos for our clients in addition to 10% of all real estate activity in Canmore for the month (statistics from the Canmore Brokers Group). Sourcing these condos, writing offers and negotiating on them has become an art form as multiple offers on a high-income producing unit are a likely possibility IF the condo is priced properly. Buyers are incredibly knowledgeable these days and there aren't a lot of investors "throwing their money around like poker chips" as one client put it.
On the market this month was the land at the corner of 7th Avenue and 7th Street, the current home of the Our Lady of the Rockies Parish. The land had previously been subdivided and re-zoned into 4 x R-4 lots making way for 16 new residences. The parcel of land hit the market listed at $4,500,000 and was instantly snatched up for $4,300,000 by Distinctive Homes. A new church has been in the works for over a decade and plans are in place to build the new one on Palliser Trail opposite of the Holiday Inn. That location was donated by Silvertip's developer, Guy Turcotte.
February Sales Breakdown
Number of Sales - 6
Average Sale Price - $291,313
Average Days on Market - 74
Average Sale Price to List Price Ratio - 100.2%
Number of Sales - 4
Average Sale Price - $428,725
Average Days on Market - 106.5
Average Sale Price to List Price Ratio - 95.8
Number of Sales - 2
Average Sale Price - $726,500
Average Days on Market - 21.5
Average Sale Price to List Price Ratio - 98.3%
Number of Sales - 1
Average Sale Price - $1,299,900
Average Days on Market - 173
Average Sale Price to List Price Ratio - 100%
Single Family Homes:
Number of Sales - 1
Average Sale Price - $719,000
Average Days on Market - 38
Average Sale Price to List Price Ratio - 95.9%
*The Average Days on Market statistics become skewed in such a lean market like Canmore's. Properties that are priced properly sell quickly and properties that are overpriced sit on the market for a while creating a gap in what is actually happening on the market.
Posted by Ben Maize on