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Canmore Real Estate Market Update Spring 2023

dan mcguire canmore real estate market update spring 2023

It’s been a busy start to the year in the Canmore real estate market in 2023, and I feel like many Buyers and Sellers are looking for an update!

Typically the Spring is the busiest season of the year in real estate markets across Canada. The same is true in Canmore. So often I have buyers and sellers asking me about seasonal trends and the best time to sell or buy. Often in the Canmore real estate market, it comes down to the property pricing itself instead of the overall market “direction.”

Why the Spring though? We see increased activity in the Spring because of the following factors:

  • Lowest inventory of the year over the Holidays and deep winter (Mid Nov-Mid Feb), as Sellers aren’t ready to sell.
  • Buyers pile up on the sidelines as they are ready to Buy (New Years resolutions, investment decisions, etc).
  • Listings start to trickle onto market in early Spring and Sellers test to see if pricing can be pushed.
  • Multiple waiting Buyers dog pile on well-priced properties (not just any property) and sales begin.
  • Other Sellers see the market action and prices rising, prompting them to come to market as well.
  • Eventually, through the season, the number of Buyers & Sellers moderates and Buyers have more options. Days on Market increase and prices stabilize or fall as Sellers capitulate.

Today, let’s talk about what’s happening in the Canmore real estate market this Spring. As always, if you have any questions about the value of your property, or are curious about a listing you see, feel free to reach out to me directly. I’m always available via text, email or call and no question is too small!

Canmore Home Sales & Listing Volume is Down Spring 2023

In the Canmore marketplace we are seeing a significant reduction in active listings across the board. This definitely isn’t something that is localized to Canmore though. In markets across the country, inventory is at historically low levels. This is due to a number of factors:

  • Economic uncertainty – particularly around interest rates as the BoC fights inflation.
  • Few options for Sellers to move to once they become Buyers again.
  • With record sales in recent years, new owners are content to stay put.
  • Current owners don’t want to apply for new mortgages.

All of these factors (and more) have contributed to the following in the Canmore real estate market in spring 2023:

  • Total Active Listings are 18% below the 5 year average.
  • Total Active Listings are 27% below the 10 year average.
  • Q1 2023 Sales for residential properties are down 36% vs Q1 2022.
  • Q1 2023 Sales for nightly rental properties are down 64% vs Q1 2022.

Canmore Home Prices Remain Elevated in 2023

Interestingly, as with many government interventions into open markets, some of the actions taken to cool housing markets have had the opposite effects. Anyone familiar with the principles of supply and demand will know that less supply (due to the factors above) may only contribute to price rises if demand remains elevated. What we are seeing in Canmore still is:

  • Buyers unaffected by interest rate rises. Many investors, economic elites, and wealthy retirees are unshackled by mortgages and continue to participate in markets depending on their goals.
  • Canmore supply has always been finite; the further dwindling has only contributed to increased price pressures.
  • Demand for our locality has always reached beyond our borders. I often tell clients: its not like we are built around a factory or coal mine (as we once were), and our fortunes are not tied to only the local populace. I have Buyers calling me from every province, all the time.

These factors and others have led to the following price actions we’re seeing now in the Canmore real estate market Spring 2023:

  • Detached and Semi-detached average sale prices are up 43% over the past five years to $1,449,632.
  • Townhouse properties average sale prices are up 31% over the past five years to $1,019,207.
  • Nightly rental properties have increased 47% over the past five years to $684,162.

What Does this mean for Buyers in Canmore?

It’s not all doom and gloom. All of the factors listed above may be beneficial to some Sellers, as supply becomes restricted, but real estate is always about give and take. There are a lot of Sellers out there who are feeling the crunch of variable rate mortgages, or are simply trying to move on from a property that no longer meets their needs. Sure – we’re seeing some multiple offer situations. But I will never coach my clients to go all-in on an over-asking offer without any conditions. That’s never a prudent option, and with the right agent, you can get the property you want on the terms you require. Period.

What Does this mean for Sellers in Canmore?

If you own in Canmore, you made a smart decision at some point, and you’re likely to benefit in terms of price due to the reasons noted above. But – the market is already beginning to moderate and there aren’t as many Buyers as there would be in previous years. Most of the cash-heavy Buyers will have their pick-of-the-litter when it comes to properties for sale, so you can’t just expect to Sell anything at any price. Ensuring your property is prepared for sale, and priced well, will make you successful in the current environment. I’ve helped many Sellers achieve outstanding results in Canmore – so if you’re looking for more info on your property, please feel free to reach out.

Canmore Real Estate Market Update Spring 2023!

I’m always looking to provide the best statistics and information possible to my clients so they can make informed decisions in our marketplace. Choosing to Buy or Sell property can be a big decision, and working with the right agent can make a big difference in the results. If you’d like more details on what listing your property would entail, or are curious about a home or investment property you see listed for sale, let’s get in touch. Always happy to help!