Canmore Market Update - January 2025

Rising prices, shifting trends and what to expect in 2025

As we move into 2025, Canmore’s market remains strong, driven by its stunning location, lifestyle appeal, and steady demand. With interest rates expected to decline further, and new policies aimed at making homeownership more accessible, both buyers and sellers have new opportunities on the horizon.

In 2024, the market saw an 8.5% increase in sale prices, rising from $1,058,238 to $1,147,075, despite a 2.5% decline in sales year over year. New listings and overall inventory remained relatively steady, though inventory dipped 2.5%. A noticeable rise in expired listings toward the end of the year reflected sellers facing a sluggish market from buyers hesitant and waiting for further interest rate cuts.

Days on market increased by 25%, from 41 to 51 days, reflecting longer selling times compared to 2023, though still significantly lower than the long-term historical trend. The list-to-sale price ratio for 2024 averaged 98.6%, but in December, it rose to 100.6%, suggesting a shift in market momentum.

In 2025 the market is expected to be shaped by several key factors, including further interest rate cuts that could unlock pent-up buyer demand and drive market activity.

Mortgage reforms, such as the introduction of 30-year amortizations for all first-time buyers and an increase in the insured (less than 20% down) mortgage purchase price limit to $1.5 million, are likely to improve affordability and stimulate both first-time buyer activity and new construction sales.

Meanwhile, the recently introduced Canmore vacancy tax may encourage some second-home owners to sell (due to the increase on their property tax bill), but its overall market impact on inventory is expected to be minimal. More likely this additional revenue to the Town will go toward funding for more accessible housing projects.

Additionally, starting in 2025, all Tourist Zoned homes will be taxed at the higher commercial rate, regardless of their use as full-time residences, which may lead to some re-zoning efforts but is unlikely to significantly alter property values.

Canmore’s appeal as a top-tier mountain destination will continue to support long-term demand. However, challenges such as tight inventory, inflation, and potential economic uncertainties, including possible future tariffs under the Trump administration, could influence market conditions.

Despite these factors, Canmore’s real estate market remains strong, with 2025 presenting renewed opportunities for both buyers and sellers. If you have any questions about the market, your property’s value, or buying in Canmore, feel free to reach out—I am happy to help!