Thomas Krause

Canmore Real Estate Market, June 1^st 2015

Canmore had 145 closed deals from January to May 2015 as compared to 207 in the same period in 2014. That is a 30% reduction in closed deals compared to last year.

The number of listings on the other hand increased from around 200 in January to 264 in June which is more than we saw during the year 2014.

While the average sales price of apartments was $399,000 in 2014, the average sales price from Jan-May 2015 was $369,000. Remarkable however, that the average price in 2015 increased constantly from 315,000 in January to 433,000 in May. Days on market reduced from 76 in 2014 to 56 in 2015. There is obviously a strong demand with very little supply for lower priced apartments and this drives prices for this kind of product.

While the average sales price of vacation properties was $214,000 in 2014, the average sales price from Jan-May 2015 was $218,000. Remarkable here that the average sales price decreased from March 2015 to May 2015. Days on...

Buying a home in Canmore can be the most rewarding and exciting purchase you will ever make. However, depending on what your current circumstances are, buying may not be the best option for you. While it is true that everyone would love to own their own home, this is not always possible when you consider the huge investment necessary. There is also the issue of practicality when buying the home. When looking at homes, you need to determine whether you should buy or rent the property. In order to help make the best decision, you need to ask yourself some important questions.

Is this something you really want to do right now?

The first question that you should ask yourself is whether you want to buy a home right now. Do you want to own a home or do you have other priorities? Owning a home is a matter of choice and you are the only one who can decide whether home ownership is a priority to you. If you decide that owning a home is important to you, you need to start thinking about how you spend...

Buying your first home can feel intimidating, but the truth is that the process is much easier than you think. You can find a home that suits your needs as long as you know how and where to look. Getting the services of a real estate agent, mortgage representative and lawyer will go a long way in ensuring that you get exactly what you need. You should not hesitate to ask as many questions as you need to help you make the right choice. Following are some tips that will help you to find your dream condo.

Determine what you want

Before you kick off your search, you should make sure that you know exactly what you want. Determine your priorities before you start condo hunting and come up with a list of your requirements. Some of the issues that you need to think about are the location, amenities, price and the number and approximate size of bedrooms and bathrooms. You should also consider how soon you are planning to move. The "Condominium Buyer’s Guide" that is available from the Canada...

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...