Canmore is seeing its strongest housing market since 2008.
The Alberta Real Estate Board says there were 527 sales in 2013, compared to 393 in 2012 and 293 in 2011.
Alaric Fish, Canmore's manager of planning, said new construction projects are underway.
"The building industry has turned a corner as well. 2013 is the best year in the last five we've had and it's not quite back to our peak levels, although we're not sure we want to get quite back to those really high levels of development — something a little more moderate is great, more sustainable."
Fish said a new housing development is planned for the Three Sisters area.
Christopher Vincent, a real estate agent in Banff and Canmore, said second homebuyers are back.
"There has been a real resurgence in the market there's a lot of movement within the market," he said.
"The majority of the second home buyers are still in the Calgary-Edmonton corridor."
Vincent says the flood didn't seem to deter sales for long. He says properties not affected by floodwater were in demand even last year.