Canmore Monthly Market Statistics – July 2021

By Robin Tuck
"

Start reading

The summer is notoriously slow in the Bow Valley, as people get distracted by summer adventures and vacations, or (more likely in this case), spend a month indoors trying to avoid the forest fire smoke!

Although the real estate activity is still strong, there’s a notable dip compared with last year’s figures. This can probably be explained by last summer’s lull in Covid activity, when people suddenly felt able to go outdoors and look at houses again after our first lockdown. Let’s take a look at the activity and see what it can tell us.

Overall Sales – QUICK STATS FOR May 2021:

  • New listings: 67 (-36% y/y)
  • Inventory: 155 (-43% y/y)
  • Average DOM 40
  • Months supply: 2.77 (-34% y/y)
  • Benchmark price: $911,300 (+24.6% y/y)
  • Sales closed: 56 (-14% y/y)

So what can we learn from the overall residential statistics in Canmore in July 2021?

Well, the market is still strong and way above the ten year average for July. We’ve seen a notable decline in activity since last year, but if you think back, May and June last year were almost non-existent. July 2020 almost certainly would have taken some of the pent up demand from the previous couple of months.

The middle of 2021 is proving to be stable with still high demand, thanks probably in large part to the interest rates staying at record lows.

With that being said, we are seeing the market start to slow a little, with number of sales dropping significantly in July as compared to June (75 –> 56 sales). And days on market has also grown slightly from around 30 days to 40 days. Generally speaking, July is a slow month in the mountains, so this is not necessarily indicative of a slump in house sale activity, but is more likely to indicate a seasonal change in demand. Even if we don’t reach the dizzying heights of last year’s activity in the final quarter of 2021, I would nevertheless expect demand to pick up again.

Inventory is also starting to grow slightly compared to the beginning of the year, and whereas before we were hovering around 110-120 listings on the market, we’re now at a stable 160-ish listings. This means that obviously there is more supply on the market, and the upward pressure on prices is slowly reducing. But again, this is still around 40% less supply than this time last year, so there’s still much less choice for buyers than usual, and therefore still more competition for home buyers than usual.

Generally speaking, I think it’s fair to say that the more unique and well appointed properties are still selling like hot cakes. In Banff, we’re still seeing houses sell within days of coming onto the market, for example. However, the less unique properties that were being snapped up before are now taking longer to sell. This suggests a growing opportunity for buyers to put in offers without having to worry about competing bids.

Lastly, we’re still seeing prices increase. The benchmark price is now into the $900k range, which suggests that all homes are rising still, on average, and 24.6% compared to last year at this time.

Overall Sales Year to date (May 2021)

  • Sales: 504 (+140% y/y)
  • New listings: 595 (+22% y/y)
  • Benchmark price: $860,757 (+14% y/y)

After a record start to the year, we’re still way up on last year’s sales stats. In fact, Canmore has seen 140% more home sales this year than at this point last year. However, 2020 is slowly reeling 2021 in and closing the gap. It remains to be seen how the remainder of 2021 will compare with 2020.

What we can also see, if we look at the price graph below, is that there are now more properties listed at above $1m than 2020, and also more properties in the 500-700k range. There are also far fewer properties listed at under $300k.

What this suggests is that there has been a general increase in prices across all price ranges, meaning some houses that were once in the 700-900k range have now shifted into the million dollar range, and so on.

Now that we have a good sense of what the market is up to, let’s dive into some of the individual sub-types of housing in Canmore in July 2021.

Detached Sales – QUICK STATS FOR July 2021:

  • Sales closed: 13 (-24% y/y)
  • New listings: 18 (-49% y/y)
  • Inventory: 39 (-49% y/y)
  • Months supply: 3
  • Average Days on Market (DOM): 37
  • Sale price vs. list price: 97.8%
  • Benchmark price: $1,181,400 (+22.9% y/y)
  • Median price: $1,368,500 (+32.9% y/y)
  • Average price: $1,657,262 (+49.9% y/y)

What can we gather from the single family home sales in Canmore in July 2021 then? There’s plenty of new information here, but the major thing to not is that prices are still going up, but so is inventory. Sales are lower than the same point last year, but historically things pick up again between August and October.

One really interesting thing to note is that the average single family home in Canmore is no longer selling for full asking price, and average sale price to list price ratio is now down to 97.8%. This is the first time since April that this has been below 100%. What that means in practice is that buyers now have a little room to negotiate with sellers again.

However, prices are still climbing! It’s still a great time to sell and lock in top dollar for your single family home.. But again, the median and average prices are telling us that a few really expensive homes are driving up the average home price, and that the majority of the properties in the million dollar home range are selling for less than the average home price.

Days on market is steadily climbing, and is now at 37 days, which means homes are now taking longer to sell than they were in previous months.

Overall, the conclusion is that the market is starting to ease for single family, detached homes. Demand may still be there, but as supply grows, the pressure is gradually easing. With that being said, homes are still selling fast and there are great opportunities to be had for both sellers and buyers! Inventory is still around half of what it was last year, so it’s still a great time to sell your home in Canmore.

Semi-Detached Sales – QUICK STATS FOR July 2021:

  • Sales closed: 3 (-57% y/y)
  • New listings: 3 (-25% y/y)
  • Inventory: 8 (-64% y/y)
  • Months supply: 2.67
  • Average Days on Market (DOM): 36
  • Sale price vs. list price: 99.7%
  • Benchmark price: $994,600 (+18.1% y/y)
  • Median price: $1,085,000 (-2.7% y/y)
  • Average price: $1,055,000 (+0.9% y/y)

Much like the detached sales, there is still plenty of demand for semi detached properties in July. After a brief dip in May and June, the prices have once again risen to new dizzying heights. We’re now seeing an average sale price of almost a million dollars for semi detached town homes. Days on market is slowly rising, much like the detached homes, and sale to list price is gradually coming down too, meaning buyers are starting to negotiate a little more.

We can also see that sales and inventory has dropped off in July, but this isn’t particularly surprising. As mentioned earlier, the summer can be a slow month for real estate, so it’s not surprising that people are out enjoying the sunshine instead of selling their homes!

The data generally tells us that fewer, more expensive homes have sold this month, and this has changed the stats in favour of rising home prices. However with only 3 sales, it’s tough to say definitively whether we just sold 3 amazing houses or if the market is generally still going upwards.

What we can say, though, is that the semi detached market is still performing extremely well, and any home owners that are looking to sell soon will probably be looking at great returns on their property.

I should also mention that there are currently only 8 semi detached homes for sale in Canmore, meaning if a good home becomes available, it will still get snapped up by picky buyers.

As I mentioned last time, if you’re selling, your property will have very little competition in this market, particularly if it’s a unique build. Semi detached properties are hard to come by, and are still in high demand. Now is a great time to sell!

ROW Houses- Sales – QUICK STATS FOR July 2021:

  • Sales closed: 20 (-20% y/y)
  • New listings: 15 (-17% y/y)
  • Inventory: 23 (-64%y/y)
  • Months supply: 1.15
  • Average Days on Market (DOM): 33
  • Sale price vs. list price: 98.1
  • Benchmark price: $714,700 (+17.8% y/y)
  • Median price: $712,500 (11.4% y/y)
  • Average price: $751,195 (10% y/y)

Row houses (or terraced houses) are still selling very well in Canmore, as they’re quickly becoming the last category of home that’s still somewhat affordable. The sales are still strong, but again, slightly down on July 2020’s performance after our first lockdown ended. We’ve also seen the inventory drop substantially from May and June. This could indicate that properties are selling quickly or that fewer people are interested in selling in the summer.

Either way, prices are still creeping upwards, and we’re now looking at average prices for row houses in Canmore sitting comfortably around $700k.

For many sellers, being able to sell a row house in Canmore for $700k, means having the option to move elsewhere to Cochrane or Calgary and buy something substantially larger instead!

Inventory is still down on last year, for obvious reasons, but is slowly starting to creep up again.

Condo/apartment Sales – QUICK STATS FOR May 2021:

  • Sales closed: 20 (+25% y/y)
  • New listings: 31 (-34% y/y)
  • Inventory: 85 (-23% y/y)
  • Months supply: 4.25
  • Average Days on Market (DOM): 49
  • Sale price vs. list price: 99.2%
  • Benchmark price: $547,600 (+30% y/y)
  • Median price: $634,200 (+43.1% y/y)
  • Average price: $642,174 (+40.6% y/y)

Apartment sales are still taking up a big chunk of the market’s activity this month, with 20 sales closed. However, this is a marked decrease compared to March-June. This is probably a seasonal change as well as a drop in pent up demand. We can also see a general plateau in prices as the prices of some condos near the prices of some townhouses and row houses.

The Canmore condo market is really a split market, with two different price ranges depending on whether your condo is tourist zoned or not. However, sales are still strong across all categories, and the benchmark price is still a solid 30% higher than last year!

Properties are now taking increasingly longer periods of time to sell in Canmore, and there are now more than 4 months supply of condos on the market based on the past month’s sale rate.

Again, the large inventory is probably due to so many sellers looking to upgrade to a house elsewhere, and take advantage of the great interest rates!

If you’re a seller, there are still plenty of opportunities to sell your condo at above market rates – the average sale price is 100.3% of asking price! And if you’re looking to take advantage of the low interest rates to move somewhere else, the quick sale time will help facilitate it!

Final thoughts

The data from the past month shows that the market is very gradually starting to cool off. It remains to be seen if August and September will pick up again (as they typically do), but anecdotally I can say that it’s certainly getting busier again compared to last month. Prices are still gradually increasing, but certain categories are starting to plateau.

As long as interest rates hold where they are, there will be plenty of new buyers coming to the market to find a new home!

If you’d like to discuss buying or selling a property in Canmore, please don’t hesitate to contact me on +14034012066 or shoot me an email at info@robintuck.com . Our team has all the experience you need to get you the best deal possible on your property!

0 Comments

Submit a Comment

Your email address will not be published. Required fields are marked *

Read another post

July 2023 Banff Real Estate Market Update

It's that time again when we talk real estate markets in the Bow Valley! We've just hit the middle of August 2023, so it's time to take a look back at what happened in our July real estate market here in Banff. Once we've taken a quick spin through the month's...

read more
Canmore Real Estate Market Update – June 2023

Canmore Real Estate Market Update – June 2023

Fresh off the press, the Canmore market statistics from June 2023 have been released, so here's a quick blog post to rattle through all the latest updates. We'll get into all the Canmore June housing market updates for 2023, as well as a quick look at the general...

read more
0 Shares
Share
Pin