Over the past few years, Canada’s cost of living has significantly increased. With the price of housing steadily on the rise and interest rates at all-time highs, affordability is a hot commodity. In Canmore, the average home price has gone up. So much so, that it is now rivaling major Canadian cities like Vancouver and Toronto. Because of this, the city is now looking for ways to tackle housing affordability and availability. In 2023, the Town of Canmore began to outline a housing action plan that would begin to find solutions to the housing crisis. More recently, recommendations were made to the town’s council on January 9th, 2024 about how to move forward. In this article, we will be going over some of the details about what’s to come for Canmore real estate for sale and housing affordability. Follow along below to learn more!

The Present Reality of Canmore Real Estate For Sale

Since the beginning of 2023, residents of Canmore have been grappling with a lack of housing availability and affordability. Locals note that many homes are often vacant during the weekdays. 2021 census data indicated that 26% of homeowners in Canmore did not live there full-time. However, it is difficult to pinpoint just how many part-time residents have homes in the town. 

While Canmore has long had the reputation of being a pricey place to settle, many individuals still choose to make it their home. Since 2006, the cost of owning a home in Canmore has gone up 65%. This is about 37% higher than the provincial average. This combined with the fact that more units are termed “tourist homes” than rental apartments, makes the situation even more challenging for permanent residents. In Alberta, the average full-time occupancy rate for housing is 92%. However, in Canmore this figure is substantially lower, sitting at 74%. 

According to CBC, “to keep up with population demands by 2030, a consultant calculated Canmore would need 2,156 units for full-time residents and 500 units to accommodate those with second homes in the town”. Evidently, there is much work to be done to meet the demand for housing and create more affordable opportunities for residents. 

Given this information, Canmore’s livability task force discussed several ways to help reach these goals.

Potential Solutions to Improve Affordability and Availability of Housing in Canmore

Removing Tourist Home Designations

Tourism, while important to the town’s economy, has caused an imbalance in the housing market. This phenomenon is not unique to Canmore, as many other provinces have been dealing with similar issues. For example, in British Columbia, new rules surrounding short-term rentals (STRs) have been introduced to create more housing options for locals. In Canmore, removing the tourist home designation would prevent new tourist homes from being approved after a set date. However, existing tourist homes would remain with this designation. Anyone who continues to operate STRs in Canmore after the date would face a commercial tax rate, regardless of whether the home is being used personally. 

Tax Tools to Support Locals

Another potential solution suggested by the tax force included introducing new tax tools to motivate people to live in their homes full-time. This would come in the form of a rebate program and those who do not qualify would face higher taxes. Officials note that higher tax rates would be introduced gradually so that the town can monitor how the real estate market responds. 

Purpose-Built Rental Incentives

Finally, it was suggested that purpose-built rentals receive some kind of incentive to encourage the development of new projects. Purpose-built rentals are properties that are developed with the sole intention of offering each unit as a rental home. This sort of housing has become increasingly popular in recent years as more young people look to find flexible housing options. One of the proposed incentives was a grant or tax relief program that would exempt new purpose-built rentals from 75% of municipal residential property taxes for 10 years. However, this will come with some conditions. 

Get in Touch Today!

If you are planning on buying or selling Canmore real estate for sale, get in touch today! We are happy to help you achieve this year’s real estate goals. 

Canmore is an incredible area to own a property. Reach out to Alpine Realty today! Learn more about all of the amazing opportunities that come with living in real estate in Canmore. For more information, feel free to message us with any questions or concerns about living in this amazing town. Be sure to check back next month for more real estate-related content!

We look forward to working with you soon! 

The post Canmore Real Estate for Sale will Soon be Subject to Vacant Home Tax appeared first on Alpine Realty RE/MAX Canmore.

Are you looking to buy or sell a property in Canmore in 2024? If you are, you must have all of the information before starting to chip away at this year’s real estate goals! Homes for sale in Canmore and Banff make great lifetime investments. With access to such incredible outdoor amenities and a strong sense of community, it’s no surprise that so many Canadians want to call these towns home. To help you get started with your new year’s real estate goals, we decided it would be best to provide you with a 2024 market outlook. Here, you will find key information about national trends, local insights, and a general idea of what to expect from the market this year. Follow along below to learn more!

Trends and Insights on the 2024 Canmore Real Estate Market

To get a complete understanding of the real estate market in Canmore in 2024, we must examine national trends and their impact on the local market. Recent market forecasts released from RE/MAX and Royal LePage have indicated that Canada will return to near-normal conditions in the months to come. Moreover, the Canadian aggregate home price is anticipated to rise by 5.5% year-over-year to $843,684.

As for interest rates, most experts predict that the Bank of Canada’s key lending rate will remain stable at 5% through the first half of 2024. During the second half of the year, it is expected that modest cuts will be made by the central bank. For this reason, several lenders are already offering discounts on fixed-rate mortgages. This year will likely mark the start of a general acceptance from Canadians towards the new normal for interest rates. For those looking to enter the market, 2024 could present more stability and affordability compared to previous post-pandemic years. 

Major housing markets in Alberta like Calgary and Edmonton are gearing up for a year of high demand. With home prices in provinces like Ontario and BC as high as they are, affordability is hard to come by. Because of this, 2024 will see numerous move-over buyers relocate to Albertan cities. Increased numbers moving to the province could bring more demand to recreational markets like Canmore and Banff. Inventory may become stringent as a result of the influx of new residents looking for places to call home and investors looking to capitalize on cheaper real estate. 

Buying and Selling Vacation Homes for Sale in Canmore in the New Year

Canmore’s epic location in the Rockies has long attracted those seeking a mountain retreat or second home. The town’s proximity to Banff is an added benefit that makes Canmore such an incredible destination. Whether you’re looking for a permanent home or a recreational property, Canmore has plenty to offer. In 2024, the demand for second homes and vacation properties is expected to remain strong. Nearly 40% of the Canmore housing market was made up of recreational properties in the fourth quarter of 2023.

Despite rising interest rates, buyers looking for vacation homes in Canmore have not been dissuaded. In fact, most buyers coming to purchase properties in the area are buying houses without financing. The continued demand for properties in Canmore has resulted in local home prices growing steadily. Canmore’s median home price for recreational detached properties is roughly $1.7 million. On the other hand, recreational condos are sitting just below $700,000.

At the end of 2023, Canmore’s Town Council approved a 7.6 percent increase in municipal tax for the new year. This was done to collect $77 million to run all municipally-led tax and utility-supported services in the area. Consequently, for homeowners who own a property in Canmore valued just under $1M, the annual tax increase would be approximately $150. Between new mid-single-digit interest rates and higher taxes, buyers should be wary of the cost of living. In markets like Canmore where properties are largely comprised of luxury vacation homes, affordability is hard to come by. 

Contact us Today!

If you are planning on buying or selling homes for sale in Canmore, contact us today! We are happy to help you achieve this year’s real estate goals. 

Canmore is an incredible area to own a property. Reach out today to learn more about all of the amazing opportunities that come with living in real estate in Canmore. For more information, feel free to message us with any questions or concerns you have about living in this amazing town. Be sure to check back next month for more real estate-related content and visit our social media page!

We look forward to working with you in 2024! 

The post Vacation Homes for Sale in Canmore: 2024 Market Outlook appeared first on Alpine Realty RE/MAX Canmore.