Canmore Real Estate Market Update – June 2023

By Robin Tuck
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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 Canadian market. Then, finally, I’ll share any interesting news updates in the past month. Here goes!

Canmore Housing Market Update June 2023

As always, our stats are looking back at the previous month, so in this blog post we will look back on all the housing market changes in the month of June, 2023.

Overall housing market changes

In total, there were 44 sales in Canmore in June, which is up about 7.7% on last year’s June (which is positive), but we’re also down 27% this year, compared to last. So there are signs of the market slowing significantly. This is not unexpected….

We’ve had a year of high interest rates, and things are definitely normalising to a market that is more typical of an average year.

The summer is generally pretty slow in the Bow Valley (because everyone is out having fun in the mountains), so this lull in activity is fairly normal.

If we look at the 10 year average, we’re almost exactly level with it. Last year was similar and then 2021 was a massive boom.

Why aren’t Canmore prices falling?

In terms of prices, we’re still seeing a surprisingly upward price trend. One might expect interest rates to have pushed prices down significantly in the past 6-12 months, but our market in Canmore has proved surprisingly resilient.

Here are some of the reasons why I believe prices are still creeping up:

  • the limited supply in Canmore, along with massive demand is generally what is keeping the market buoyant. These market fundamentals are being seen Canada wide, and the short answer is that there are too few houses for the number of people in the country. Canada’s population just surpassed 40 million, and it’s estimated that the government needs to build an 330,000 houses by 2026 to even create enough rental housing for everyone. This means building houses 20% faster than what was achieved in 2022!
  • The rental market has skyrocketed, meaning many renters have turned to buying instead. This is keeping our demand at astronomical levels, with very small changes in supply. In Canmore, again, we are seeing a ridiculously tough rental market, creating more demand in the buying market. To compound this, work from home is very definitely still popular, and Canmore is still seen as a great place to move from other provinces. Unlike Banff, there are no restrictions on who can buy, so there is still a regular influx of residents from out of town.
  • Businesses are struggling to find workers if they can’t provide accommodation for them as well. So many businesses are buying up houses, simply as a necessity. This is taking quite a few houses out of the market.

Lastly, Canmore, compared to other high priced markets, like Toronto and Vancouver, could still be considered reasonably priced to some buyers looking to relocate. The foreign investment ban has protected us a little from buyers investing with strong USD backing, but many foreigners are still finding loopholes to get into the market.

New Listings in Canmore in June

New listings are down to 70 this month, down 30.7% from this time last year and 24.3% YTD. Our inventory is also way down, at 133. This is down 16.9% year on year.

In general, at this time of year, a lot of people put selling on pause, particularly those that use their property for short term rentals or as 30 days + rentals. This is because the summer is when the bulk of the tourists visit, and the majority of the year’s income is earned. Most sellers try to capitalise on the summer’s income before listing in the Fall or early winter, once tourism has dropped off again.

Average price of homes in Canmore in June 2023

The benchmark price in Canmore continues to climb upwards. It is now at $920,300, and has risen 5.7% since this time last year. This is mostly due to price increases in cheaper property types. In particular, condos and apartments have risen 11.2% to $664,200 and townhouses have risen 8.4% to $1,005,800. This is significantly more than detached homes, which are up 3.1% ($1,460,000) and duplexes, which are up 4.3% to 1,218,400.

Generally speaking, these numbers can be skewed significantly, depending if the property has a short term rental permitted use or a long term only. There have been several sales of large short term rental condo and townhouses that would significantly push up the average price for that category. Properties that do not allow short term rentals may sell for far less than the benchmark price. So it’s always important to take the numbers with a small pinch of salt and always do a bit more digging!

Price trends in Canmore

If we look at the number of properties that are selling within each price bracket in Canmore, we can see that there is definitely upwards movement on price. From 2022 to 2023, we can see that fewer properties are selling in the $500k-$699k price bracket, and more are now selling in the $700k-$1m+ range. That is almost certainly because of price appreciation of the various properties in town. It is getting harder and harder to find property under $500k across the board.

Detailed stats for Canmore housing market in June 2023

Detached home statistics in Canmore June 2023

We can see that detached prices have increased 3% year on year in June 2023. The benchmark price is now $1,460,000, which is astonishing.

In general, there are relatively few detached properties on the market, with only 11 sales last month. This may in part be due to a limited number of new listings coming on the market. The number of listings (15) is currently only very slightly outweighing the number of sales (11), leading to a very small growth in supply.

Current monthly supply is around 2.82 months, which is also down on this time last year (-4.4%).

New listings are down 17% on last year.

In general, prices continue to creep up, and this may be in part due to the limited options out there for buyers. Even with limited demand in the current economic climate, there is enough to outweigh the extremely limited supply!

Semi-detached homes/duplexes in Canmore in June 2023

Semi detached sales have been very low in June. In fact, there were only 2. There were 3 new listings, and inventory remains fairly low (8 homes).

Duplexes and single family homes can easily be similar in price in Canmore, as many are extremely high quality, and in some cases far larger than single family homes. For instance, some duplexes in Hubman Landing could be as large as 4,000 sqft! So, in general, separating this category from detached doesn’t make a whole lot of sense.

Benchmark price is currently 1,218,400, which is not a million miles from the detached prices.

Townhouse stats for Canmore in June 2023

In general, townhouses have seen a lot of movement during June. There were 15 sales, which is up 114% on this time last year, and there were 17 new listings. Due to the large amount of sales, inventory is down 20%, and sales of townhouses are almost keeping up with new listings (88% sales/new listings ratio).

The average price for townhouses has now surpassed $1m ($1,005,800), which is absolutely mind boggling. With that being said, it definitely pays to bear in mind that there is huge variation in style and quality of townhouses in Canmore. This month, higher end townhouses may have sold, pushing the average price up, but there are still some townhouses in the 800’s and 900’s, depending on what you look at.

Condo stats for Canmore in June 2023

Condos have continued to sell extremely well in Canmore during June. There are still plenty of new developments going up along Bow Valley Trail, and this is leading to a glut in sales and new listings. There were 35 new listings in June (still down 35% on last year), and the inventory is now up to 57 condos. We have 3.56 months of supply, and the average price for condos is $664,200.

The reality, however, is that Canmore really has two distinct condo markets; short term and long term rentals. For short term rentals, you might be able to buy a 2 bed 2 bath condo at that average price (if you’re lucky). For long term rentals, you can get significantly more bang for your buck. So again, these numbers have different meanings depending on which sub group you are looking at.

Canmore Market Summary June 2023

We’ve gone into the numbers, and the general theme is that things are generally a little better than this time last year, in terms of prices and sales, but overall for this year to date, the Canmore market is way down on last year.

It’s also important to take the Canmore market in the wider context of the country’s macro economy, as this adds some extra meaning to the numbers we’re seeing.

High interest rates are not having the effect that the government has hoped, as many buyers in Canmore are not hugely affected by fluctuations in bank rates. Many are retirees that have paid off their mortgages or have bought in cash. In general, high interest rates seem to be affecting the lower priced properties, which tend to transact more often as a result (there are also far more of them, so more sales is normal).

Interesting real estate news this month

The federal government announced a new scheme this month called the First Home Savings Account (FHSA). This allows first time home buyers to put $8k per year into a tax free savings account, in the hopes that they will be able to save faster for a downpayment on a house. This seems to have been implemented in order to appease the many buyers that feel that house prices are out of their reach.

It will be interesting to see how this plays out. We already know that the country has far too few homes for the number of people that live here, so theoretically, creating more buyers and demand in a market where demand already far outstrips demand could create further price increases. If everyone can buy a house, surely that will push prices even higher? To really ease the price issues in Canada, focus needs to be directed towards creating more supply.

If we look at Canmore, prices are still rising month on month, and it’s hard to imagine tax free savings of $8k per year allowing buyers to catch up. But let’s stay positive and see what happens!

Interest rates were raised AGAIN!

Yes, two weeks ago, the Bank of Canada raised their interest rates for the 10th time since March 2022! Rates now sit at 5%, which apparently have finally had the desired effect and reduced inflation to 2.78% (on track for the 2% target). It seems like there are now no more rate hikes planned for the rest of the year, but at this rate, it is still quite likely to keep demand lower than one might hope.

If rates stay this high for the foreseeable future, it is quite likely that prices will start to fall again. But time will tell!

Final thoughts on the June Canmore Housing Market

So as we can see, the Canmore market has continued to remain resilient in the face of high interest rates and tough economic climates. With prices continuing to climb, there is still time to capitalise and sell in a good market.

If you’ve considered selling, there is absolutely no time like the present! Please don’t hesitate to contact me at info@robintuck.com if you have any interest at all and have questions. Having said that, if you simply want to chat real estate or ask about markets, you can also reach out!

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