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Buy low, sell high.

How many times have we heard the expression, “buy low, sell high?” Since the novel coronavirus (COVID19) and the ensuing worldwide pandemic hit world markets, it’s been obviously tough; if not depressing to look at the daily market numbers. Hope you haven’t opened your online stock brokerage account or that letter from your investment firm; spoiler alert, things in the stock market are not pretty at the moment. Even news from the C.D. Howe Institute saying that Canada’s hit a recession hasn’t helped anyone feel any better. But there is hope.

I know it might sound cliche, but while the markets will undoubtedly go up and go down (TSX) and investors will always try and “time the market”. 

(Courtesy Mackenzie Investments)

(Courtesy MacLean’s)   

Invest in real estate. 

Here’s why you should consider investing in real estate and where:

Canmore

Locals have long said, “they’re literally not building any more mountains” when asked about the cost of living (re real estate) in the Canadian Rockies. Fact is outside of living in Banff (and by extension Banff National Park) Canmore does have a higher cost of living comparable to other parts of Alberta. The Bow Valley is unique and unlike any other part of the province. We’re surrounded by parks (provincial and federal) so developable land is at a true premium – pun intended. We’ve also been asked, given current events, “how’s the market?” Here’s the data:

Hotel Condos (AirBnB/VRBO)

HOTEL CONDO – MARKET TRENDS – UNITS SOLD

HOTEL CONDO – MARKET TRENDS – AVERAGE SELLING PRICE OF UNITS SOLD

HOTEL-CONDO-MARKET-TRENDS-UNITS-SOLD

The number of units sold so far in 2020 is close to a decade low. The same can be said so far in 2020 for the volume in value of these units, but the average price for hotel condos continues to increase. Something has to change. We believe based on the current COVID-10 health pandemic, Sellers are a) taking their listings off the market b) listings are expiring given the Bow Valley is essentially on lock-down. But don’t forget tourism will eventually come back. Banff National Park, Canmore and even the Calgary Stampede must go on (albeit the Stampede has been cancelled this year too). 

Residential

RESIDENTIAL MARKET TRENDS – VOLUME OF UNITS SOLD

RESIDENTIAL MARKET TRENDS – UNITS SOLD

RESIDENTIAL MARKET TRENDS – AVERAGE SELLING PRICE OF UNITS SOLD

Canmore’s residential market has also seen some shifts albeit all in a negative direction. Volumes, units and prices, in general, are down, across the board. Can this be blamed on COVID-19? The timing is hard to miss. 

Cochrane

Canmore and by extension Banff National Park; namely the mountain parks of the Canadian Rockies might attract the largest share of tourism, no doubt. But for everyday people, whether you’re looking for a place to call home or maybe a long-term rental property (good tenants are worth their weight in gold!) Cochrane offers a choice. For those of you not familiar with this community, it’s located just 45 minutes east of Canmore; 20 minutes west of Calgary and it’s a growing community. Given the Bow Valley’s cost of living, many former residents have chosen to call this thriving Calgary suburb home. 

Cochrane Monthly

Cochrane Quarterly

In a broader context, Cochrane’s current real estate market is down. This isn’t so much related to COVID-19 but energy prices in general too (Cochrane’s economy is not nearly as tourism-driven as that of Banff or Canmore) but overall it’s been nearly a decade since the price of real estate has been where we are today.

Cochrane 0070 – Quarterly-1

So while the stock market may seem luring or at time stomach-turning, there’s always an alternative. Whether you’re looking to buy for yourself, invest in the long-term or even sell (timing and pricing is everything!) If you have any questions, concerns or would like some more information, get in touch!

 

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