Low Inventory continues into August.. Will the rest of the year bring us closer to a balanced market?
As I am writing this, I can hear the music at the Canmore Folk Music Festival in the background. It is so amazing that our local festival is the longest running folk music festival in Alberta starting in 1978. I feel like a broken record with the message of a continuing lack of inventory. Over the last five months, our listing inventory has only deviated from the average by at most 6.5%. It is this lack of inventory that has slowed down the number of sales as the buyers do not have much for choice, so we are seeing some buyers expand their parameters of what they are looking for while others are just being patient as they wait for that ‘right’ property to be available.
The data for July is skewed as over half of the sales and close to half of the new listings were just reported sales that happened previously at a new hotel condo development that is under construction to be completed in 2026. If we remove those added properties our months of supply is 2.43 for the entire market which continues that trend of a sellers market (a months of inventory between 4-6 is often referred to as a balanced market) Last year at this time we had expected a rise in inventory which did occur but it was not sustained as the pent up demand worked quickly through those listings bringing the inventory through the winter at the 2nd lowest on record (only behind 2 months the previous year)
We do continue to expect more listings to come on through August, September and October but will it be enough to move the market to be more in balance. That will take a substantial increase as we continue to have buyers waiting on the sidelines for that right property to come to market.
We hope you have enjoyed your summer to this point and the remaining summer is amazing! We are here to help with all your real estate needs and are never too busy for your referrals. Thank you!
With Summer Comes
Continued Low Inventory
It was great to see the town excited for Canada Day and a spectacular Canada Day Parade, even with an extended route. With the weather being so great locals and visitors alike can get out and enjoy this mountain paradise we call home.
A year ago, we had concern over our low inventory and had hopes we would see it rise… Unfortunately, it has lowered even further. Number of listings on July 1st, 2023, is the lowest on record for July and is down 28% lower than 2022. This lack of inventory has some buyers standing pat and waiting for the right property to come to market.
This leads us to believe this lack of inventory will continue but we hope to see the levels increase over the next few months as we have typically seen in our market.
Average sale prices over the last quarter have both increased and dropped over the 2nd quarter of 2022 depending on the market segment. We saw drops in Single Family Homes, Half Duplexes, Townhomes and Lots, while Apartment condos and hotel condos both saw increases. With the lack of sales (tied to lack of inventory) these can be deceiving as we have seen sale prices rise throughout the market segments.
Days on market in the last year have had slight increases which can be attributed to sellers pushing price points, so buyers have had a better chance (time wise) to make an offer and negotiate. In some situations, we are seeing sellers reduce pricing if they were too aggressive with their initial asking price. Days on market is still incredibly low so buyers must be ready to jump if the right property hits the market.
We hope you have a great July, and we would be so thankful if you could pass along our information if you know of anyone looking to buy or sell.