Calgary’s 2025 residential real estate market is already showing signs of changes. Prices. The consumer impact of lowered mortgage rates. Listings-to-sales ratios which are nudging toward a much-awaited balanced market. And new build trends.
When it comes to re-sales, the detailed 2025 Calgary and Region Yearly Outlook Report crunched the numbers and the trends. The Report highlights how easing lending rates, improved supply, and continued population and employment gains are shaping Calgary’s housing market. It also cautioned that Calgary’s re-sale market is also impacted by various factors like slowing migration, increased competition from new home construction and some economic uncertainty.
According to WOWA, Canada’s popular digital personal finance encyclopedia, at year-end 2024, the Calgary re-sale market stats showed:
- Calgary’s monthly home sales with a 3.2 per cent yearly decline.
- Average home price increased by 12 per cent, to $605,074.
- Detached home average price increased by 8.6 per cent, to $797,000.
- Semi-detached home average price increased by 12 per cent $656,000.
- Townhouse average price increased by 7.2 per cent to $448,000.
- Condo apartment average price increased by 14.2 per cent to $358,000.
Into Q1 2025, the Calgary re-sale market is already showing a shift. “Prices should keep increasing, but not as much as they have in the last couple of years,” explains Susanita de Diego, CREB chair. “Also, there is a trend of increasing inventory, and Calgary re-sale market is finding balance. Affordability is still an issue although the relative affordability of a given property is determined by the individual needs of each buyer. But Calgary continues to be one of Canada’s most affordable cities, particularly when compared to major urban centres like Toronto and Vancouver.”
With experience and much Calgary savvy, she points out that despite the good news of lowered mortgage rates, “It’s hard to say how changes in the lending rates will shift market activity. It certainly doesn’t hurt to see the rates go down, but we always say that buying a home is a long-term investment and most people will experience different interest rate environments over the lifecycle of being a homeowner.”
de Diego acknowledges that especially in the past several years, Calgary has been boosted by inter-provincial migration but that may also be changing. “Fewer people are moving to Calgary from other parts of Canada, but Calgary continues as a very attractive and affordable option, and they’re still coming. At the same time, new home construction and resale listings have gone up to meet the demand, and we’re seeing the market move towards balanced conditions.”
CREB has cautious positivity about Calgary’s 2025 re-sale market.
Following three consecutive years of limited supply choice, inventory levels in January rose to 3,639 units. While the 70 per cent year-over-year gain is significant, inventory levels remain lower than typical for the start of a year, but inventories rose across all property types, with some of the largest gains driven by apartment-style condominiums.
“Supply levels are expected to improve this year, contributing to more balanced conditions and slower price growth,” says Ann-Marie Lurie, chief economist at CREB®. “Compared with sales, we continue to see persistently tight conditions for detached, semi-detached and row properties, while apartment condominiums show signs of excess supply for higher-priced units.
“Demand is expected to remain strong, with sales forecasted to exceed 26,000 units – over 20 per cent higher than long-term trends. While we anticipate stable sales levels overall, market dynamics will shift as rental rate adjustments and supply improvements influence different segments of the housing market.”
CREB forecasts that Calgary’s housing market will transition toward balanced conditions, with price growth moderating to an expected annual gain of three per cent.
In real estate, as in most aspects of business, competition is a good thing.
CMHC stats and trends indicate that, despite the forecast for a decline in 2025 housing starts, things could change. “A few of the key factors behind this potential decline include things like slowing population growth given changes to immigration policy, sufficient supply coming on stream in the rental market and geopolitical uncertainty like U.S. tariffs, contributing to more caution with spending by builders and developers,” says Taylor Pardy CMHC lead economist, Prairies and Territories.
But things can – and have been known to – change. “Factors that could potentially counterbalance lower housing starts include a strong labour market contributing to additional housing demand, lower mortgage rates and 30-year insured mortgage amortizations for first-time buyers and purchasers of new homes.”
Pardy acknowledges but tempers the Calgary real estate market impact of migration. “It is certainly a big factor for both re-sale and new build segments, and the implications differ depending on the type of migration.
“Changes in the rate of immigration in the near-term would have more of an impact on the rental market as many newcomers to Canada are initially accommodated in the rental market before moving into homeownership some time down the road, in many cases within the first 10 years after arrival. Given changes to immigration policy we expect there will be some near-term impact on rental demand. Interprovincial migration and its influence on the re-sale/new home market tends to be mixed with a fairly even split in terms of contribution to rental market demand versus ownership.”
The robust activity of Calgary new builds is also a dynamic positive of the Calgary real estate market.
“While difficult to forecast the future, a good point to look to regarding Calgary new builds and housing starts is CMHC housing starts and completions data,” according to the plugged-in and enthusiastic Brian Hahn, CEO of BILD Calgary Region (BILDCR). “In CMHC’s January 2025 Housing Starts and Completions Report, last year was the third consecutive year for record housing starts in both the city of Calgary and the Calgary Metropolitan Area.
“The stats track that 20,165 housing starts were recorded in Calgary, showcasing a year-over-year increase of 21 per cent. Completions remained strong, and the year closing with completions increasing by 69 per cent, year-over-year.”
Hahn adds the similar strong performances happening across the entire Calgary Metropolitan Area, which includes Airdrie, Chestermere, Cochrane, Foothills County, High River, Rockyview County, Okotoks and Strathmore.
In Calgary’s constantly changing new build market, while the economy, mortgage rates and affordability are key factors, consumer trends significantly impact supply and demand.
“The array of housing options available including options reflects the different facets of the consumer spectrum looking to purchase a home,” he says. “In addition to the popularity that has been seen in the new communities being built in the Calgary Region, there has been a slight shift in popularity to multi-family living amongst consumers given the relative affordability and attainability for many looking to purchase their first home as well as the low-maintenance lifestyle offered.”
BILDCR’s Brian Hahn observes that Calgary consumers increasingly seek homes that incorporate both innovative technology and environmental sustainability. “Our members are responding to this demand by integrating features such as low-flush toilets and non-drip taps, which help reduce utility costs and minimize environmental impact.
“In addition to these eco-friendly features, over the last few years there has been growing interest in multi-family, driven by the need for more affordable housing options due to significant population growth and rising interest rates.
“While some consumers still prefer the space and amenities of traditional single-family homes, many are opting for the lower-maintenance and more affordable lifestyle that multi-family living offers. This reflects the growing variety of housing choices BILD members are delivering to meet evolving Calgary consumer preferences.”
