It was an extremely active and robust year for Canmore and Bow Valley real estate. Low inventory, high demand, record sales and sales volume, as well as price increases ruled 2021.
Short term rental properties, which include tourist and visitor accommodation zoning, accounted for a significant portion of sales. While new developments in Canmore and Dead Man’s Flats appeased some of the demand for this type of property, a hunger for short term rental properties remains. The pressure on this segment of the market has resulted in an over 20% price increase on short term rental homes. There are no signs of the demand abating as buyers continue to search for a mountain property they may use for recreation and/or income.
Detached and semi-detached homes as well as development lots were also a hot commodity in the Bow Valley last year. High demand and low inventory produced quick sales often with multiple offers, driving a price increase of approximately 20%. Home owners are staying rather than moving within the market due to the lack of inventory. Combined with the scarcity of development lots, this sector of the market will continue to be competitive with price gains.
Condominiums experienced a sharp increase in sales and a 10% price increase. Demand will place upward pressure on prices as buyers turn to resale condominiums due to the lack of new development in this portion of the market. Although townhome sales volume was down, specifically in the latter part of 2021, it was only due to lack of inventory. Townhome prices, especially in the valley bottom, are increasing steadily. For the first time ever, townhome prices have reached an average sales price of over $1 million.
Looking ahead for 2022, land scarcity, low inventory, and the strong and consistent demand for the mountain lifestyle will continue to fuel the Bow Valley real estate market.
If you are considering selling your mountain home or property or would like to enter the Canmore market, please reach out to our team. Barry and Jack have a wealth of knowledge and experience and will assist you in formulating a smart plan to make your maneuver in this challenging market.