2017 Fernie Real Estate Market Outlook
The Fernie real estate recovery, in the residential and recreational segments of the market, continues with its strongest year since the early days of the great recession. Fernie is one of the most desirable locations in the Canadian Rockies to call home. It is a liveable community with natural beauty, historic buildings, schools of high academic standards, respected sports teams and enjoyable in the summer or in the winter seasons. There are exceptional lifestyle opportunities for all ages.
The local market had vigorous improvement in sales volume in 2016 over the prior years. In 2017, all segments of the market will strengthen through the winter months and will continue to be strong into the busy spring and summer seasons. Economic conditions will keep mortgage rates very low, making 2017 an ideal time to buy or build a new residence or second home.
We reviewed our sales activity from the 1998 and 1999 years when the Canadian dollar was at record lows to the US dollar. By coincidence, these years were the tipping point for sales of real estate in the Canadian Rockies. Our sales history showed that 55 percent of purchasers were from southern Alberta, 15 percent were American buyers, 15 percent were from the UK market and about 15 percent were other regions of Canada or countries such as Australia. The low Canadian dollar vis-à-vis US dollar or the UK sterling will once again make Canadian real estate purchases favourable for Americans and for UK investors, with foreign exchange discounts of up to 20-to-25 percent on our Canadian dollar. The same foreign exchange spreads will also curb the flow of US real estate purchases by Canadians, unwilling to pay a premium of 20-to-25 percent on the purchase of a US home. While the resource economy is having market adjustments in early 2017, their segment of the economy is vastly better than fifteen years ago and will continue to be a solid foundation of the Canadian economy.
Our forecast is for continued construction growth in all Fernie areas that are close to amenities or in desirable locations. Outside Fernie, the Koocanusa lake area will continue to have strong construction activity this year.
Fernie remains an incredible community and destination with a quality of lifestyle unmatched by any other mountain communities in the Canadian Rockies. Today, over 300 families enjoy their Fernie Vacation Properties home in our area. We remain committed to quality design in architecture, landscape and interior spaces, to sound construction and to reliable customer service.
In 2017, when looking for your new home, I encourage you to start your search with Fernie Vacation Properties home.
Mike Delich, President
Fernie Vacation Properties Inc