It’s no secret that housing in Canmore costs a pretty penny. According to Zolo, the average price of homes sold in May 2022 was $1.1 million. Real estate prices in the Bow Valley have been climbing for years and you may be wondering why that is. While we can’t give you a definitive answer, we sure can shed some light on what might impact a market and things that sway the market in Canmore specifically.
Why Prices Go Up
Such is the case with any type of market, there are an endless array of factors that can contribute to its fluctuation. One of the key players in the real estate market is the economy. Typically home prices reflect the economy in the way that low unemployment and rising incomes contribute to a rising market. On the other side of the token, if incomes are falling and job loss is increasing, the downturned market may drive the real estate market down, as well.
Another huge factor is supply and demand. If supply is low and demand is high, prices will go up. If there is a ton of supply and demand is low, prices will drop. The former is called a seller’s market and the ladder is called a buyer’s market.
Interest rates on mortgages also tend to impact the market as a whole. Increased interest rates can cause a higher barrier of entry for prospective buyers and decrease demand.
Other things that impact a region’s housing prices are the location and desirability, laws and regulations in the region, demographics, population growth, and more.
Here are a few things about Canmore’s market specifically.
The Draw of Canmore
Canmore welcomes visitors from around the world, and for good reason. The place is stunning. Canmore is home to a vibrant arts and culture community as well as an endless array of sports and recreational activities. The mountains are truly breathtaking and the community itself is incredibly special, too.
Canmore is a beautiful community that is safe and close to a metropolitan city with an international airport. There is good health care, access to most services, and a pretty good value in comparison to other mountain communities like Whistler, for example.
Canmore has been attracting people from around the country and the world for decades and that isn’t likely to stop anytime soon. Therefore, the limited land and high demand will likely keep prices on the high end.
Supply & Demand
Speaking of the high demand in Canmore, Sotheby’s predicts that there will be an increase in inventory in 2022, meaning more homes on the market. Because of the pent-up demand, they predict that this increase in inventory won’t increase the supply, rather, it will just increase the number of sales.
So, if you were hoping that supply and demand might even out, it’s difficult to picture a world where people aren’t keen to plant roots in the Bow Valley.
The Pandemic’s Impact
Another thing that has impacted housing prices in Canmore and places like it is the COVID-19 pandemic.
According to a report by Royal LePage, Canmore home sales have jumped to record highs since the first lockdown was lifted in May 202. The demand for recreational properties significantly increased during the pandemic as folks flocked out of metropolitan areas and enjoyed the ability to work remotely. Remote work has extended into the present day in many industries and this allows people to work in cities while dwelling in mountain communities like Canmore.
There are a whole lot of reasons that Canmore’s housing prices are on the rise, and these are just a few of the many factors to keep your eye on.