With 2012 upon us, I'm sure many of you are wondering how the Canmore real estate market fared in 2011. With 2009 and 2010 showing increases in total sales volume after the economic downturn of 2008, we all expected continued growth in sales 2011. However, this was not the case. With a total sales volume of 283 properties sold in 2011, it is clearly ranked as the second slowest year in the last decade. 2008 was the slowest year on record as far as sales volume goes, with 238 properties sold. Sales volume bounced back in 2009 with 314 sales and again in 2010 with 339 properties sold.
So why the did the market slow down in 2011? Weather was definitely a factor at the start of the year. We rang in 2011 with some bitterly cold weather. January and February saw high winds and temperatures in the -30's, which kept all but the most determined outdoor enthusiasts away from Canmore.
2011 Sales Volume by Month 2010
25 January 26
19 February 25
28 March 37
18 April 32
25 May 27
33 June 31
28 July 27
14 August 26
26 September 36
27 October 28
22 November 22
18 December 22
Another factor that played a role was the economic uncertainty that came with the announcement of the down grading of the US credit rating in August of 2011, and the European economic instability. It seemed many were cautious about making substantial investments during this time. As you can see in the chart above, only 14 properties were sold in August 2011, compared to 26 in 2010.
Sales returned to expected levels in October, November and December 2011. We saw plenty of traffic downtown, and increases in calls and visits from buyers looking for a bargain on Canmore properties. With interest rates at all time lows and an excellent selection of competitively priced properties, buyers are actively searching for Canmore properties once again.
This leaves many wondering - How did sale prices in 2011 compare to sale prices in 2010? I will break this down for you by type of property:
In 2011, 89 Single family homes sold for an average price of $865,954 and were on the market for an average of 105 days (DOM). In 2010, 110 Single family homes sold for an avg. price of $842,223 with an average 77 days on market. Clearly, although sales volume is down, single family home values are trending upwards, which is a positive sign that the market is leveling out for this category.
In 2011, 26 half duplexes sold for an average price of $739,990 and were on the market for 64 days on average. 2010 saw 30 half duplexes sell at an average price of $765,816 and 100 DOM. Based on these stats, Half duplex pricing was still correcting in 2011.
In 2011, 63 Townhouses sold for an average price of $468,371 and 100 DOM. In 2010, 79 Townhouses sold for an average price of $491,361 and 82 days on market. This category appears to be correcting as well.
2011 saw 61 Apartments sell for an average price of $351, 570 and 143 days on market. In 2010, 76 Apartments sold for an average price of $381,578 and 100 DOM. Price corrections are obvious here as well.
In 2011, 11 Fourplexes sold for an average price of $443,454 and 107 days on market. In 2010, 10 Fourplexes sold for an average price of $505,525 and 100 DOM. This is a slightly more significant price correction - greater than a 10% decrease.
In 2011, 2 Triplexes sold for an average of $615,000 and 13 DOM, whereas 1 Triplex sold in 2010 for an average price of $970,000 and 90 DOM.
In 2011, 16 Hotel Condos sold for an average price of $291, 970 and 48 DOM. In 2010, 24 Hotel Condos sold for an average price of $289,466 and 72 DOM. Prices here seem to have leveled off, and sales volume has dropped due partly to stricter lending criteria by most financial institutions on Hotel Condos.
In 2011, 8 Manufactured Homes were sold at an average sale price of $289,625 and 90 DOM. In 2010, 4 Manufactured Homes were sold at an average sale price of $417,500 and 44 DOM. This is a significant 30% correction in the average sale price of Manufactured Homes.
So what will the Canmore real estate market do in 2012? That remains to be seen. Based on what we have seen in the past few years, there will likely be some continued price corrections in Multi-Family dwellings (apartments, townhouses, fourplexes) and a stabilization in Single-Family home pricing. This is based on the fact that there are greater
number of multi-family homes on the market at any given time - this increase in
supply creates greater competition among these properties, resulting in a
downward influence on pricing in order to sell. Single- family homes tend
to have lower inventory levels on the market than multi-family homes, and
therefore there is less competition and prices remain stable.
There are currently 290 active
listings in Canmore, where the general trend has been an average of 400-450
listings in the past at any given time. This is a good sign that we could see
the market stabilizing soon. 2012 will likely bring another year of
recovery. Sellers will have to price their properties competitively and
negotiate with today`s savvy buyers, if a timely sale is truly their
objective.
