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.