CANMORE – The median price for a detached home in Canmore dipped by 1.1 per cent year-over-year to $918,500, according to a recent report by Royal LePage.
The slight drop in value stands in stark contrast to the median price for a condominium in Canmore, which jumped by 9.6 per cent year-over-year to $472,000.
Brad Hawker, a broker and owner of Royal LePage in Canmore, said the drop in price for a detached home was likely caused by several factors, including a new supply of lots in the Silvertip neighbourhood.
“These were lots that hadn’t been on the market previously, so it gave buyers an opportunity to purchase lots and build, as opposed to buying existing inventory,” said Hawker.
Once the market absorbs the new supply, he said he expects the price for detached homes to increase next year, as long as there aren’t any unexpected changes in the economy.
As for the surge in condominium prices, he said it pointed to a strong local economy and strong tourism activity. He also said demand was being driven by people looking for a recreational property, as well as first-time homebuyers.
“The Alberta economy is not quite as strong as it was, but we’re still seeing the baby boomers and the Gen Xers looking either for a recreational property, or retirement property,” said Hawker.
He said there has been a slight increase in interest from China and the United States, however the majority of buyers are still Canadian or local, accounting for about 65 per cent of purchasers.
In another report by Zoocasa, an online real estate company, it found the overall average home price in Canmore was $696,000 in October.
To purchase a home at that price, the buyer would need an annual income of $94,998, slightly below the median household income of $98,906, making Canmore the least affordable place to purchase a home in Alberta.
Beyond economic conditions, Hawker said the housing market in Canmore slowed down over the past few months largely because of the wildfire smoke through the month of August and into September.
“The smoke was quite intense this year, as I’m sure you’re quite aware, so people weren’t staying and people that were coming couldn’t see the views,” said Hawker. “It wasn’t the type of situation where people either are falling in love with the place for the first time or reconfirming that this is the place they want to buy.”
According to the Royal LePage report, prices in many key winter recreational real estate markets experienced healthy year-over-year price increase, as retirees, investors and buyers drove demand.
