Winter Forecast 2020-2021
Let do a bit of a recap on the Spring Market first.
Unless you were in a cave or a Chinese prison for the last 9 months, you have probably witnessed one of the most socially changing times in our lives. We saw the beginning of an excellent spring market, and mid March, the doors slammed shut, and our world shut down. Uncertainty reigned supreme, and a lot of people sat on their hands. We saw a few clear-thinking clients that saw the benefit of having an escape to a place like Canmore take advantage of some excellent pricing.
As we moved out of April, a whole new world opened for the Canmore market. All of a sudden, the value of escaping the large population became paramount in people's minds. Companies found out that it was ok and productive to have employees work remotely. Executives and high skill professionals began to turn their attention to markets where they felt safe, and the activities and community suited their active lifestyle. A quiet market for 2 months began to light up. We began to see a corresponding increase in listings.
Ask to get prices, the difference between asking and selling, began to show a smaller spread. While the Market fluctuated slightly, we remained very close to a balanced market for most of this time. For sellers, we saw those who priced their property "Sharp" see a very successful outcome. They had few days on the Market and a very close "ask to get" percentage. In many cases, we saw multiple offers. From May 1st – June 30th, we saw an average ask to get of 97%, with 26% of those properties selling at full or above asking price. Average Days On Market was 76 Days
Summer Market
From July 1st, we saw a final closing price at 98% of the asking price. 25% of those sales were at full or above asking price. This number contained some developer pre-sales. In most cases, the developer was asking and getting, the total asking price.
The Market was bustling during the summer period with around 224 properties, either Sold or Unconditionally Sold. Price pressure continued to be a factor, but, as always, in a Real Estate Market, those who priced too high for the Market saw long days on Market. This, combined with the frustration of not seeing acceptable offers during a very active time of the Market, often resulted in the Seller ultimately accepting less for their property versus it being appropriately evaluated to start with.
Winter Outlook
The Canmore Market continues to be robust, driven by a strong desire to live and work here as well as low-interest rates. Our recent health crisis has resulted in a refocus by many on what is essential for their families and well-being. Canmore presents a unique setting that allows people to achieve those goals and live in a safe, proactive community. Sitting at a home office looking at the snow-capped mountains seems a lot better.
For others, a healthy market means it's time to execute their exit strategy. Some are looking to downsize, and others are looking to take the equity out of their property.
We see a continuing trend in our Market and strong demand for property; while listings have been keeping up as far as numbers are concerned, we do not see an adequate supply in certain product areas where we have clients actively looking.
Single Family homes in the "Core" areas (South Canmore, Lions Park, Benchlands, Homesteads, Rundle View) are in high demand, as are Townhouse properties. While pricing is not rapidly increasing, the time on Market is short and will continue that way into the winter.
We will see strong demand for revenue-related property; it's critical to remember that pricing and purchasing of these properties are affected by the availability of financing for them. While interest rates are low, we find the financial institutions are very conservative with their lending portfolio these days, and purchasing this property type should be thought of as a cash purchase. At the very least, high cash to mortgage scenario.
Due to travel restrictions from the COVID-19 outbreak, we will see a robust local tourist market. Many Albertans will be looking to Canmore as a healthy "get away" market, so we anticipate our clients seeing good returns on these revenue-producing properties.
Due to a significant increase in building costs, the luxury market is offering some great opportunities. At present, we see some fantastic high-end property priced below
building costs. Savvy high-end buyers are seeing this as an excellent time to get into the Canmore Market. We can anticipate a continuing trend with the near tripling of lumber wholesale prices and tariffs on certain building materials as these costs are passed on to the end-user.
Here at Canmore Real Estate Group, we have achieved below average "time on Market" by employing a details analysis of the property, proper pricing strategy, and innovative marketing strategies for our clients selling property. This strategy also pays off for our buyers, as we can counsel them away from overpaying for a property.
Recap
- The Canmore Market remains very active
- Canmore continues to be a desirable location as our Clients refocus and
prioritize
- All Market areas are robust
- Revenue Property remains in demand due to lack of 'Rubber Tire' travel choices
- Single Family Home demand in core areas (South Canmore, Benchlands, Rundleview, Homesteads, Lions Park) is strong.