What You Need to Know About the Low Inventory Real Estate Market in Canmore
March 24, 2016
An uncertain economy, a weaker dollar and the average home teetering one million – all reasons to assume Canmorites would be fleeing the nest. So, why aren’t they?
All it takes is a global event to up small town dismal status to the ultimate living destination. The 1988 Olympics was Canmore’s ticket to spark a much-needed population growth after the diminishing coal mining industry in the 70’s.
Fast-forward thirty years and Canmore becomes one of Canada’s most desired places to live (thank you, tourism).
And with great desire comes a great price tag. The average price of a single-family home** in Canmore now hovers the one million dollar mark (hello, Vancouver).
Let’s toss in some serious economic uncertainty. You’d expect this high price tag to tumble and the number of available houses on the market to swell. But in the case of Canmore, the housing inventory remains low and the prices stable.
What are we to make of the current housing market in our beloved mountain town? These five facts:
- Inventory May Be Low, But It’s Manageable. Although the number of houses on the market is relatively low – only 47 single-family homes are up for sale – the inventory is manageable due to the moderate amount of buyers.
- It’s Not Your Typical Bidding War. You’d think with a low inventory and stable prices buyers would be fighting for listings like Best Buy customers on Black Friday. But homes are, in fact, listing on the market and closing in a timely manner. The average listing for a single-family home since December 1, 2015 is a pleasant 72 days.
- Low inventory Is Not Driving Prices Higher. If the low inventory aligned with a high buyer demand, housing prices would increase. But the current Canmore buying market remains moderate and prices remain stable.
- Buyers Are Cash Buyers. Before the previous recession, buyers borrowed heavily to own their homes. This borrowing resulted in the need to dump their properties in the economic downturn. Most buyers today are purchasing homes with cash versus high mortgage debt. These buyers are financially stable and tend to weather economic storms, therefore we won’t find ourselves facing the same real estate bubble like the previous downturn.
- Affected By The Global Market, Not Local. Unlike our struggling neighbours of Cowtown, Canmore is more impacted by the global market versus the provincial real estate market. Many Americans have owned property in Canmore for several years. With the current low Canadian dollar, we can expect more interest from our southern friends. But don’t fret yet, they’re currently remaining conservative in their buying behaviours within our mountain town.
Keen to learn more about Canmore’s low inventory housing situation or simply want to connect to chat about all things real estate? Fire me off an email | Contact Us.
**For a visual look at the value changes in single-family homes and apartment/ condos over the past 10 years, take a look at the following infographic.
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