Thomas Krause

How is the Real Estate Market in Canmore doing?

A lot of people have been asking me this question since the beginning of the year. Obviously the dropping oil prices have created a lot of uncertainty in a market which is strongly influenced by buyers from Alberta. 2013 and 2014 were two strong years for Real Estate in Canmore with ongoing price increases and between 450 – 500 sales every year. But how about 2015?

While Jan 2014 saw 25 closings, Jan 2015 saw only 13 closings which is about 50%

While Feb 2014 saw 35 closings, Feb 2015 saw 25 closings which is about 70%

March 2014 has seen 52 closings. To date (16.03.2015) we have 13 unconditional properties and 14 conditional sales. Considering that we still have another two weeks, we might still catch up with the numbers of 2014. 

At the end of January the Bank of Canada surprisingly decreased interest rates which in consequence made mortgages more affordable.

So what is happening?
The drop in oil price did have a significant influence....

The Canmore Real Estate Market in the first half of 2014
- trends and developments - 

The Canmore Real Estate Market in 2014 has been very vibrant and since 2012, which saw the lowest average sales prices after the boom with its high prices in 2007, prices have been on the rise again. Despite increasing prices demand is high and properties sell faster in the average than during the last five years. A still low inventory (just over 200 listings) increases the pressure and drives prices. Canmore is still a sellers’ market.

Sales Numbers and –time:

Whilst the number of sales in Canmore increased from 2012 to 2013 from 371 to 488 by ca. 30%, there was no increase of sales numbers during the first half of 2014 as compared to the first 6 months of 2013 (ca. 250).

The strongest sales areas in both years were the $300-400,000 range and the over $800,000 range.

Remarkable is the decrease of “days on market” time (the time from when a property is listed until...

Mortgage insurance premiums are going up in Canada, but the rise is not expected to alter the dynamics in the real estate market in a material way. Canada Mortgage and Housing Corp. (CMHC) made the announcement last Friday after completing its annual review of insurance products and capital requirements.

Mortgage insurance premiums for homes or rental properties that comprise one to four units will increase by about 15 percent on average across the entire range of loan-to-value (LTV) ratios.

For example, for LTV ratios of up to 60 percent, the premium rises 10 percent; for LTV ratios of up to 95 percent, the premium rises 40 percent.

The LTV ratio is the amount of the mortgage loan as a percentage of the appraised value of the property, and is used by lenders to assess their lending risk before approving a mortgage.

A higher ratio is generally seen as higher risk; therefore, if the mortgage is approved, the loan will typically be given at a higher interest rate.

In Canada, mortgage insurance...

Every winter at the beginning of February, Canmore's main street is prepared with snow for Canmore Winter Carnival.

The carnival will include the International Biathlon Union Cup Races, Xterra Triathlon and Chandra Crawford’s Fast and Female. Ski and dog sled race events will take place and the public is invited to bring their cross country skis to enjoy the set ski track on snow covered Main Street. Street hockey, ice carving, log sawing, and snow sculpting events will all take place in downtown Canmore throughout the carnival. See here how the snow tracks are prepared in front of my REMAX office in downtown Canmore. 

Canmore can be cold in Winter, but it is also incredibly beautiful! Located between Banff and Calgary, you get the best of two worlds! Banff National Park is just 5 minutes away and in an hour you are at the airport in Calgary!