Monthly Market Update – Canmore – May 2021

By Robin Tuck
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It’s a new month, and finally the market statistics from May 2021 have been released for Banff and Canmore. There is plenty of great new information to digest month, so let’s dive straight in with the latest. I’ll also take a look at some of the latest market news from May that may be affecting house prices.

Overall Sales – QUICK STATS FOR May 2021:

  • New listings: 104 (+51% y/y)
  • Inventory: 139 (-39% y/y)
  • Average DOM 31
  • Months supply: 1.93 (-79% y/y)
  • Benchmark price: $897,400 (+19% y/y)
  • Sales closed: 72 (+188% y/y)

So what can we learn from the overall residential statistics in Canmore in May 2021? The major thing to note is that the market is still extremely hot. With 104 new listings this month and 72 sales, properties are barely lasting more than a month on the market before selling. That means if no new properties came on the market, almost all of the properties would be gone in two months!

Inventory is still way, down on 2020 (about 38% down year to date). That means there’s still a lot less choice for the average buyer. This time last year, we had 229 properties on the market in Canmore, but in May 2020, we only had 139. That means sellers still have a lot of power and, as a result, we’re seeing most properties (on average) sell for full asking price, if not more! On average, homes in Canmore sold for 101.2% of their asking price in May 2021. What a time to be selling!

Overall Sales Year to date (May 2021)

  • Sales: 372 (+238% y/y)
  • New listings: 417 (+45% y/y)
  • Benchmark price: $842,460 (+10% y/y)

According to stats Canada’s last census results in 2016. There are 7,963 dwellings in Canmore. With 372 sales so far this year, it means we’ve seen almost 5% of the homes in Canmore transact in 2021, already! That’s a huge number of homes being traded!

Last year, we saw 525 traded the entire year, and we’re still only in June!

But general market statistics are a fairly rough indicator of how specific property types are doing. So let’s dig into some of the sub categories for a closer inspection.

Detached Sales – QUICK STATS FOR May 2021:

  • Sales closed: 13 (+117% y/y)
  • New listings: 19 (-10% y/y)
  • Inventory: 25 (-56% y/y)
  • Months supply: 1.92
  • Average Days on Market (DOM): 28
  • Sale price vs. list price: 100.6%!!!!!!!
  • Benchmark price: $1,136,800 (+13.5% y/y)
  • Median price: $1,298,000 (+21.0% y/y)
  • Average price: $1,621,809 (+45.7% y/y)

What can we gather from the single family home sales in Canmore in May 2021 then? There’s lots to unpack here but the main thing to note is that house sales are still extremely strong, with the majority being sold in less than a month still, for full ask (or more) on average!

What the benchmark, median and average prices tell us, is that a few very expensive home sales are pulling up the average (mean) price. The median price typically represents the middle price of all the homes sold, and even this is still signficantly above the benchmark (what we might expect the average house in this category to sell for).

So conclusions to draw from this? If you’re thinking of selling a single family home in Canmore right now, the statistics tell us that you’re likely to sell it fairly quickly at a very good price (between 10 & 20% higher than last year!).

Inventory is still way down on last year (down 56% on last year), meaning it’s still very much a seller’s market. There are very few of these properties for sale still, driving the days on market way down.

If you’re a buyer, it pays to be ready with all your ducks in a row (financing, downpayment ready), so you won’t miss out on deals!

Semi-Detached Sales – QUICK STATS FOR May 2021:

  • Sales closed: 6 (+500% y/y)
  • New listings: 8 (+0% y/y)
  • Inventory: 11 (-56% y/y)
  • Months supply: 1.83
  • Average Days on Market (DOM): 58
  • Sale price vs. list price: 103.1%!!!!!!!
  • Benchmark price: $977,000 (+12.8% y/y)
  • Median price: $1,389,000 (+6.8% y/y)
  • Average price: $1,450,167 (+11.6% y/y)

Much like the detached sales, there is still plenty of demand for semi detached properties. On average, they’re taking a bit longer to sell than any of the other categories, but they’re (on average) selling for above asking price – 103.1% on average!

The average statistics suggest that properties are clustering at a price that’s much higher than the benchmark price, suggesting that houses are still selling for much higher than is normal for this market.

What’s also important to note is that there are relatively few semi detached houses available at any one time. At the end of May, there were only 11 semi detached houses available for sale. So if you have relatively specific criteria, you may have relatively few options and a lot of competition! Again, if you’re buying, it’s a great idea to have all your financing and downpayment ready so that you’re ready to move on any properties that catch your eye!

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 May 2021:

  • Sales closed: 14 (+133% y/y)
  • New listings: 26 (+44% y/y)
  • Inventory: 26 (-62%y/y)
  • Months supply: 1.86
  • Average Days on Market (DOM): 16!!!
  • Sale price vs. list price: 103.7%!!!!!!!
  • Benchmark price: $710,900 (+4.9% y/y)
  • Median price: $681,507 (-8.3% y/y)
  • Average price: $750,075 (-1.6% y/y)

Row houses (or terraced houses) are selling ridiculously quickly in Canmore in May 2021- on average, they’re taking only 16 days to sell! Blink and they’re gone!

This is a particularly competitive space for real estate, as the homes tend to offer plenty of space but are still somewhat affordable compared to the semi and detached homes in Canmore. As a result, they tend to sell at or above asking price. We are seeing a slight increase in inventory in the market though, so we may be looking at the market peak in March and April.

Strangely though, the average sale price for May is actually down compared to last year.

This may be because more options have been built in this property type, increasing the supply. The relatively larger number of options to choose from also gives buyers more options when looking to purchase, meaning they’re not facing extreme bidding situations or pressure to offer way above asking. With that being said, they’re still selling extremely quickly, so it’s important to be ready when the right property comes up!

Condo/apartment Sales – QUICK STATS FOR May 2021:

  • Sales closed: 39 (+225% y/y)
  • New listings: 51 (+132% y/y)
  • Inventory: 77 (-1% y/y)
  • Months supply: 1.97
  • Average Days on Market (DOM): 33
  • Sale price vs. list price: 100.3%!!!!!!!
  • Benchmark price: $541,100 (+27.6% y/y)
  • Median price: $655,000 (+82.8% y/y)
  • Average price: $614,805 (+100.9% y/y)

Condo/apartment sales are still making up the bulk of the market sales in Canmore in May. This month there were 51 new listings and 39 sales. The large number of condo sales is likely due, in part, to the large number of condos in Canmore, but it’s also indicative that a lot of owners are looking to use this period of low interest rates to trade up to something bigger, or potentially sell their condo and move out of the Bow Valley to a more affordable home. This often means moving to Cochrane, Calgary or Airdrie.

The average stats paint a picture of a few low price sales skewing the price a little downwards. With $655k being the middle sale, it’s likely that the sales above the median were priced close to that number, and the sales below the median were priced much lower. This speaks to the different price brackets of condos in Canmore, where some 1 and 2 bedroom condos will sell closer to $400k, and the condos that can be used for short term rentals being priced closer to $600k.

There are dozens of options for new home buyers that are itching to enter the property market, and with such high turnover, buyers are still spoiled for choice! We’re also seeing the inventory start to creep up, meaning we may soon move into more of a balanced market with prices starting to plateau soon.

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

It’s clear from this month’s stats that the market is still very hot indeed, with properties across all asset classes in Canmore performing extremely well, selling fast and for a great price. Buyers and sellers continue to reap the rewards of the low interest rates and work from home opportunities!

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 robin@cascaderealty.ca . Our team has all the experience you need to get you the best deal possible on your property!

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