Average days on market are starting to drop especially in the entry level single family home market; the average days on market for single family homes in Canmore was 72 days this past month. We are happy to announce that two of our homes sold this month within days of being listed. The key to the market lately, is to start at an attractive price that will garner attention and then be less flexible come negotiations.
Sales have been strong this past month again doubling those of February 2009. The majority of sales remain with the entry level home buyer; those who are purchasing their first condo and then those moving up in the market and purchasing their first single family home. There were a total of 26 sales in February in Canmore, Exshaw, Harvie Heights, Lac Des Arcs, and Dead Man's Flats that were single family homes, duplexes or condos. As of March 1st, there were 14 conditional sales in the system with only two of those being recreational properties.
A number of buyers are looking to take advantage of low prices in the luxury single family market and make a great investment. We have yet to see any significant movement in this segment of the market with a huge amount of selection available in the $1,000,000 + properties.
The second home buyer is back and growing with the level of interest up significantly over last year. The majority of buyers are seeing this as an excellent time to invest in the Bow Valley. As we are all well aware, they are not making any more land in Canmore.
We don't foresee any major change in the local market in the short term with the new mortgage rules set to take place. First home buyers remain eligible to purchase with a reasonable down payment of 5%. The benefit of the changes will take place in Canmore's condo market with a tightening on the rules for speculators. A large portion of properties currently on the market in Canmore where bought as a speculative investment and we are now seeing the results of these investments; a significant decline in values, empty properties, a large number of listings, and investors unable to close on properties they purchased. The majority of second home buyers that we work with have at least 20% down and will not be affected by the changes in regulations. We could potentially see a flurry of activity as interest rates look set to rise in July.
