Karen Greene Real Estate

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  • Vacancy Tax in Canmore: What You Need to Know

    Vacancy Tax in Canmore: What You Need to Know

    Karen Green, Vacancy Tax in Canmore

    Vacancy Tax in Canmore: What You Need to Know

    There’s been a lot of conversation about the newly implemented vacancy tax in Canmore, and for good reason. 

    Whether you’re a full-time resident, a second homeowner, or simply following local news, this tax is making waves throughout the Bow Valley. It’s a major shift in how the town approaches housing availability and affordability. While the intentions are good, the outcomes may be more complicated than they first appear.

    April 28, 2025: Legal Ruling on the Vacancy Tax 

    This week, Justice Christopher Simard of the Court of King’s Bench ruled the Town of Canmore can proceed with the vacancy tax. However, the tax will not be implemented for another year (starting in 2026). 

    The ruling states that the declaration of a vacancy tax is within the “reasonable interpretation of the MGA (Municipal Government Act),” but there is one change, which is why the tax won’t start until 2026. 

    As it was previously stated, Section 9 of the vacancy tax bylaw allows the Chief Administrative Officer (CAO) of Canmore to determine if a property doesn’t meet the bylaw’s criteria to be a primary residence sub-class for a year, the assessed person can be retroactively liable to pay taxes.

    Justice Simard ruled this to be an “improper retrospective effect” for the 2025 tax year, and by pushing the start to 2026, it will not have an “unfair retrospective effect that offends the rule of law.”

    Read the Full Article

    The Basics: What Is the Canmore Vacancy Tax?

    Introduced in 2024, the Livability Tax Program is aimed at addressing Canmore’s ongoing housing crisis by encouraging better use of existing homes that sit empty for most of the year. It primarily targets second homeowners whose properties are not being used as full-time residences or aren’t part of the permitted short-term rental pool. 

    This isn’t a new tax by any means. In 2022, the Government of Canada instituted the Underused Housing Tax (UHT), which is an annual federal 1% tax on vacant or underused homes. This primarily impacts foreign national owners, but it also had some impact on specific Canadian homeowners.

    To be considered a primary residence, the owners or the renter must live in the property for a minimum of 183 days per year, with 60 of those days being continuous.

    The idea is to free up more housing for local residents and long-term renters by disincentivizing homes that sit vacant. It’s part of the Town’s larger push advocating for housing affordability, community vitality, and sustainable growth.

    The Process: How It Works

    Every property owner must complete a Declaration of Use. 

    Declarations can’t be submitted until December 31 each year, meaning many second homeowners are in a holding pattern, unsure of how their property will be categorized or taxed until year-end.

    As it currently stands, the Town of Canmore will apply a tax of 0.40% of the property’s assessed value. Based on a median assessed value of $1.043 million, here’s how that might look:

    • Primary Residence: $2,136

    • Second Home under the Vacancy Tax: $6,308

    • Tourist Home: $6,545

    The Unintended Consequences

    While the goal is to make housing more accessible for locals, the unintended consequences are already being felt:

    • Uncertainty for second homeowners: Many of whom have long-standing ties to the community, contribute to the local economy, and spend significant time in Canmore throughout the year. They now face an unclear and potentially costly process without much clarity on how the tax will be applied.
    • Limited housing impact: Even with this policy, we don’t expect a large number of homes to suddenly become available for local renters or buyers. Canmore’s inventory challenges are deeply rooted, and this is just one piece of a much larger puzzle.
    • Potential legal challenges: Some believe this tax oversteps, especially when applied to non-permanent residents, and there’s already talk of legal action in the coming months.

    What Should You Do if You Own Property in Canmore?

    Stay informed. The best thing you can do right now is to keep an eye on official updates from the Town of Canmore and start preparing for your Declaration of Use at the end of the year. 

    Make sure you understand how you’re using your property, whether it’s a primary residence, short-term rental, or second home used intermittently.

    This is a developing topic, and I’ll continue to share updates as more information becomes available. I also recommend visiting Fair Future Canmore, which has great information about this tax and will share more about the court’s ruling mentioned above.

    If you’re considering buying or selling in Canmore, or wondering how this new tax might affect your investment, let’s talk. I’m always happy to offer insight and guidance based on your unique situation.

     

  • Canmore Spring Market Outlook: What to Expect in 2025

    Canmore Spring Market Outlook: What to Expect in 2025

    Spring Market Outlook. What to Expect in 2025

    Canmore Spring Market Outlook: What to Expect in 2025

    With the first three months of 2025 coming to an end, there’s been a lot of movement in our local market and across the country as well. While it’s hard to say where things are going to be in the next three, six or 12 months, there are a few trends that will impact both buyers and sellers.

    Here’s what I see from the market trends so far and how you can get yourself in the best position to purchase a new home or sell your current home.

    New Construction: Tariffs Driving Up Costs

    One of the biggest factors affecting new builds and even renovations in Canmore this year is the increasing cost of construction. 

    According to the Canadian Home Builders’ Association, “Canada imports some $3.5B in glass and glass products, $3.1B in major appliances, $2.2B in hardware, about $1B in ceramic tile and products.” Now, only appliances are being targeted by the current tariffs, but we can already see the effect of this across all products. 

    We’re facing a confluence of factors right now: tariffs, a weak Canadian dollar, inflationary pressures, and changing political environments. Developers and builders are facing higher expenses, which will inevitably be passed on to buyers.

    Overall, Canada is still seen as a geopolitically safe zone. Many of the luxury properties, and even Short Term Rentals (STR) and townhomes, have remained competitive even with all the market changes, interest rate fluctuations and more.

    If anything, we’ll likely see an even slower start to new construction/new builds this year. But that’s where working with a real estate professional who has a deep understanding of our market can support you in making the best decision. We can determine if buying a new build is the right decision for you now or getting into a current home first and build later on.

    Lower Inventory: A Competitive Spring Market

    Canmore’s real estate market has long been characterized by limited supply and high demand. Who wouldn’t want to live here?

    This spring is shaping up to be no different. While active residential listings in March were slightly higher than last year at 117 units, the market remains tight, particularly in the entry and mid-range price points. We’re likely going to see more listings as the weather warms up and the traditional “spring market” picks up.

    It’s currently a seller’s market. With Alberta’s growing population and interest rates trending lower than last year, demand is likely to absorb much of the available inventory quickly. 

    This impacts buyers and sellers in two different ways. This continued low inventory means buyers should be prepared for competitive conditions. And when I say prepared, I mean starting the buying conversation early and getting all the financial requirements in place to move quickly. 

    For sellers, a low inventory makes it harder to want to sell if you don’t have another place to go to. Selling and buying at the same time requires a plan. For sellers, the plan needs to be more than determining a list price. Selling and buying at the same time involves many, many moving parts, so lean on your real estate professional to help you coordinate the timing, financing, and negotiations for this process!

    Market Trends to Watch

    • Short-Term Rental (STR) Demand: STR properties saw a surge in sales, with 14 transactions in February compared to just 4 in January. Investors continue to be drawn to Canmore’s strong rental income potential, making these properties highly competitive.
    • Luxury Market Strength: Detached home prices have exceeded $2 million in four of the last six months, with high-net-worth buyers continuing to seek premium properties.
    • Townhouse Appeal: With affordability and flexibility top of mind, townhouses now make up over 32% of the residential market, offering an attractive alternative to both apartments and detached homes.
    • Impact of the Vacant Home Tax: This new tax is not expected to impact Canmore’s inventory levels. That said, this does hurt owners who have a second home here, at least in how the tax is currently imposed. I’m going to leave this topic for another post, but I recommend Fair Future Canmore for more information.

    For buyers, competition remains strong, but opportunities still exist. With townhouses gaining popularity and STRs maintaining investor interest, buyers should be prepared to act quickly when the right property comes along.

    For sellers, the combination of limited inventory and high demand makes this an excellent time to list. Properties that are well-priced and in sought-after locations are likely to move quickly, especially as the spring market picks up momentum. 

    The market is changing constantly…I’m not sure there’s been a time in my career when things are “normal.”

    Whether you’re looking to buy, sell, or invest, having a clear strategy and working with an experienced local expert can make all the difference.

    Let’s chat about how we can navigate this market together.