As the Canmore real estate market navigates into 2025, it continues to showcase its unique blend of natural allure, lifestyle appeal, and investment potential. This past year highlighted both short-term fluctuations and long-term growth, with emerging trends signaling shifts in buyer preferences and market dynamics. Here’s a comprehensive look at the key changes and insights that shaped Canmore and the surrounding hamlet’s real estate market in 2024.
Residential Market Trends
The residential market remained robust in 2024, with property values continuing their upward trajectory. Average prices for detached and semi-detached homes grew by 2.7% year-over-year (YoY), while long-term growth since 2019 reflects an impressive 76.4% increase. Median prices closely mirrored this trend, underscoring sustained demand for high-quality properties in Canmore’s sought-after locales.
Overall residential sales activity rebounded, with a YoY increase of 17.7%. However, over the past five years, residential sales volume has seen a 15.8% decline, a reflection of constrained inventory and a gradual shift in buyer behavior toward other property types.
Short-Term Rental Market
Short-term rental (STR) properties continued to be a cornerstone of Canmore’s investment appeal. Despite a 28.9% decline in STR sales this year due to reduced listings, their long-term growth remains remarkable, with a 60.2% increase in sales over five years. STR values also soared, with average prices climbing by 75.9% since 2020. These trends highlight Canmore’s enduring desirability among tourists and investors alike, driven by its year-round appeal and strong rental income potential.
Shifting Market Composition
2024 underscored a shift in buyer preferences, with affordability, supply, and a lock and leave convenience driving interest toward townhouses. Townhouses now account for over 32% of the residential market. These properties offer a middle ground between cost-effective apartments and premium priced for detached homes, attracting young families, first-time buyers, and second home owners seeking space and flexibility.
Residential apartment condos experienced an increase in market share year over year, as they remain a vital entry point for buyers and those looking to downsize. Detached homes held steady, reflecting their continued appeal among buyers.
Inventory and Market Activity
The Canmore market remains characterized by tight inventory. Total residential listings increased 10.8% YoY but have decreased 23.3% since 2019. This limited supply, coupled with strong demand, has been a key driver of price appreciation. Properties are taking slightly longer to sell, with average days on market for detached and semi-detached homes increasing by 7.1% YoY. However, they are still selling 25% faster compared to 2019, reflecting a healthy pace of market activity.
Luxury Market Resilience
The luxury segment shone brightly in 2024, bolstered by high-end property demand from local, national and international expat buyers. There were record setting sales across segments including detached, semi-detached and townhomes. The total dollar volume of sales grew by 5.3% YoY to over $649,000,000, even as the number of transactions declined, underscoring the influence of premium property sales. 2024 was the second highest dollar volume of sales on record, while only being the seventh highest transaction volume for sales. Since 2019, total sales dollar value has risen by an impressive 58%, driven by rising prices and a shift toward quality over quantity among affluent buyers.
Factors such as remote work flexibility, a focus on lifestyle, and limited supply have made Canmore’s luxury homes increasingly desirable. Buyers are drawn to the combination of natural beauty, exclusivity, and long-term investment potential.
Looking Forward
Canmore’s 2024 real estate market has proven resilient, adapting to shifting buyer needs and economic conditions. With long-term price appreciation, growing interest in townhouses, and the enduring appeal of short-term rentals and luxury homes, the town remains a coveted destination for homebuyers and investors alike. As the market evolves, Canmore’s unique combination of natural beauty and strong investment fundamentals ensures its continued allure in the years to come.
With 399 residential and 189 short term rental sales in 2024, the Canmore, Harvie Heights, Lac Des Arcs, Deadman’s Flats, and Exshaw market remains a small overall market. As we head into 2025, active standing inventory is at what is traditionally a low level in January. With 25 short term rental listings, 7 lots and 113 residential listings, most segments are either in a buyer’s or balanced market. December finished the year strong with a number of sales at Logel Homes Altitude project in Three Sisters and the launch of Alpine a short term rental project on Bow Valley Trail.
Heading into the spring real estate market, there is historically an increase in inventory in March – May. Continued strong demand, lower year over year interest rates, and Alberta’s growing population, will likely absorb a lot of this inventory as it comes to market
Emerging Trends for 2025
As we look ahead, several trends are likely to shape Canmore’s real estate market:
- Sustained Price Growth: Limited inventory and continued demand will likely drive further appreciation in property values.
- Townhouse Popularity: With limited new construction of detached and semi-detached homes coming to market, townhouses will continue to be in high demand as a versatile option for a range of buyers.
- Investor Interest in STRs: With changing land use and potentially fewer tourist homes, STRs will remain attractive for their income-generating potential and strong price appreciation.
- Luxury Market Expansion: High-net-worth buyers will continue to influence the market, with premium properties seeing steady demand.
- Impact of the Vacant Home Tax: This tax for non-permanent residents has just been rolled out and will likely see legal action in the coming months. We do not foresee a huge number of properties coming to market as a result of the tax. This tax in the short term will not have an impact on Canmore’s chronically low inventory levels, especially in the much needed entry and mid-range market.
Detached and Semi-Detached Homes
2024 Sales up 10.6% YoY to 136 (five-year average 167)
2024 Inventory up 16% YoY to 217 (five-year average 230)
2024 Average Sale Price up 2.7% YoY to $1,800,388
2024 Median Sale Price up 3.6% YoY to $1,554,000
2024 Sales Volume up 13.5% YoY $244,852,765
Townhomes
2024 Sales up 16% YoY 130 (five-year average 157)
2024 Inventory up 1.1% YoY 181(five-year average 197)
2024 Average Sale Price up 6.9% YoY $1,050,137
2024 Median Sale Price up 6.9% YoY $999,950
2024 Sales Volume up 25.2% YoY $136,517,850
Apartment Condominiums
2024 Sales up 32% YoY to 128 (five-year average 139)
2024 Inventory down 17.4% YoY to 169 (five-year average 177)
2024 Average Sale Price up 4% YoY to $761,166
2024 Median Sale Price up 2.4% YoY to $655,500
2024 Sales Volumes up 36.1% YoY $96,668,160
Short Term Rental Use
2024 Sales down 29% YoY to 189 (five-year average 278)
2024 Inventory down 27% YoY to 245 (five-year average 350)
2024 Average Sale Price up 8.6% YoY to $862,681
2024 Median Sale Price up 10.6% YoY to $819,000
2024 Sales Volume down 22.8% YoY $163,046,786
