Compared to the spring of 2024, it feels as if some balance has returned to the Calgary real estate market. Home prices are continuing to rise, but not nearly as quickly as they were this time last year.
Inventory is rising, although sales have declined, and affordability remains a concern in the city, just as it does across much of the country.
The state of the market is creating challenges and opportunities, and there are a few notable insights that can be taken from the 2025 Calgary Housing Market Report:
- Calgary’s average home price is at an all-time high
- Sales have declined year-over-year
- Affordability continues to be a concern
- The population continues to rise
- Interest rates are decreasing
There’s a fair bit to unpack in the report, but the most important question is how the state of the real estate market in 2025 is going to affect you, as a seller, buyer, or realtor.
2025 Calgary Real Estate Market Report Insights
WOWA’s current Calgary Housing Market Report reveals a few notable trends:
- Average Home Price: $646,743, up 6.3% year-over-year.
- Benchmark Home Price: $591,100, down 1.4% year-over-year.
- Total Sales: 2,236 transactions, which is a 22.4% decrease from April 2024.
- Sales-to-New-Listings Ratio (SNLR): 55%, indicating a balanced market.
- Inventory: 4,061 units, reflecting a significant increase in available listings.
These numbers differ significantly from the April 2024 Real Estate Market Report, when Calgary’s real estate market was red-hot and homes were in short supply, coinciding with an increasing number of people moving to the city.
That’s not necessarily a bad thing, though, and the new housing data suggests the market is moving from experiencing intense seller’s conditions to being more balanced. That changes the dynamic between buyers and sellers.
1. Balanced Market Conditions
The current SNLR of 55% places Calgary in a balanced market territory, a shift from the strong seller’s market observed in 2024. If you’re looking to buy, that’s likely a positive. For sellers, less so.
Challenges:
- Increased Competition: Sellers may face more intense competition as inventory levels rise, necessitating more strategic pricing and marketing efforts.
- Longer Selling Times: Homes may take longer to sell compared to the rapid pace of competitive bids during the years immediately following the COVID pandemic.
Advantages:
- Opportunities for Buyers: Buyers have more options and less competition from others when they make offers on homes. This gives them a better negotiating position.
- Market Stability: A balanced market can lead to more predictable pricing trends and less volatility.
2. Shifting Buyer Preferences
There is a noticeable shift in buyer interest toward more affordable property types, such as condos and townhouses. Interestingly, the year-over-year average price of semi-detached homes actually decreased, while the average prices of condos and townhomes increased.
Challenges:
- Detached Home Market: Demand for detached homes has softened, although that hasn’t entirely slowed down the rise in prices.
- Affordability Constraints: Despite increased inventory, first-time buyers may still struggle with affordability. While prices are still nowhere near what they are in Vancouver or Toronto, the average cost of a home increased by 6.3% in the last year.
Advantages:
- Growth in Multi-Family Home Opportunities: Increased demand for condos and townhouses creates opportunities for developers and investors. Calgary continues to undergo zoning and regulatory shifts that are impacting multi-family home development.
- Diverse Market Opportunities: While detached homes have been the preference for years and remain a robust market, they’re not the only type of housing that home buyers may be interested in.
3. Affordability Challenges
Despite the balanced market, affordability remains a major issue for many Calgarians, with average home prices reaching new highs.
Challenges:
- Rising Prices: The average home price has increased by 6.3% year-over-year, outpacing wage growth.
- Mortgage Rates: Higher interest rates continue to impact monthly housing costs, affecting buyer purchasing power.
Advantages:
- Policy Responses: The city has implemented zoning changes to allow for more multi-family housing, aiming to increase supply and hopefully improve affordability.
- Investment Potential: For investors, the demand for affordable housing presents opportunities in the rental market. Adding secondary suites is a lot easier than it was a year ago and can bring additional income while increasing property value.
4. Inventory Growth
The number of active listings has increased significantly, providing buyers with more choices and reducing pressure on prices.
Challenges:
- Market Saturation: Oversupply could lead to price corrections, although that doesn’t represent an immediate concern.
- Seller Expectations: Sellers may need to adjust expectations regarding pricing and time on market.
Advantages:
- Buyer Leverage: Increased inventory gives buyers more negotiating power and reduces the likelihood of bidding wars.
- Market Diversification: A wider range of available properties means more choice for buyers and a better chance that they find a home they really love.
5. Opportunities in a Transitioning Market
As Calgary’s real estate market changes, realtors have the chance to adapt and thrive by understanding and responding to these changes.
Strategies:
- Market Education: Speak honestly with clients about the current market conditions to set realistic expectations, whether that’s for selling or buying.
- Diversified Services: Make sure you, as a realtor, can offer advice and options for every property type and price point as the wants and needs of clients evolve.
- Investment Guidance: Assist investors in identifying opportunities in the growing multi-family and rental segments.
Where Does Home Design Come In?
As Calgary’s real estate market enters a period of balance, working with home designers has more benefits than ever. The advantages of working with custom home designers like the team at Ellergodt Design include:
- Designing multi-family homes: The condo and townhouse market is growing. Being able to build townhomes, fourplexes, and rowhouses allows you to enter that market.
- Differentiation: Properties that have unique design elements stand out, and with more homes coming onto the market, these features drive interest in real estate listings.
- Enhancing property value: Renovations can increase the value of your home, and custom home designers can help you renovate with selling in mind.
- Staging and presentation: Presentation can be a difference-maker when you’re looking to sell a home, especially when there are more homes on the market for buyers to look at. Interior designers can enhance your property’s appeal, potentially reducing listing time and even increasing the selling price.
- Reliable expertise: Most clients aren’t going to know the ins and outs of municipal bylaws, building codes, or the potential of their property when it comes to development. At Ellergodt Design, those are areas we know well and can provide guidance and answers.
Let’s Talk!
Calgary’s real estate market feels a lot more balanced today compared to a year ago, and there are lots of opportunities for buyers, sellers, and realtors. At Ellergodt Design, we work with realtors to help their clients make the most of their properties.
Get in touch with Ellergodt Design, and let’s discuss options.
FAQs About Calgary’s Housing Market 2025
Are house prices dropping in Calgary?
While there’s been a drop in the speed at which housing prices are increasing in Calgary, the average price of a home in Calgary actually increased 6.3% year-over-year. The price of semi-detached homes decreased year-over-year, but otherwise, the average price of detached homes, condos, and townhouses all increased.
Is it a good time to buy a house in Calgary?
There are still affordability concerns, but with more new homes being added to the market’s inventory, sales have decreased, making it a more balanced market than it was a year ago. That means you’ll have a better negotiating position as a buyer and likely more options as well.
Is there a seller’s market in Calgary right now?
No, Calgary’s SNLR is 55%, which indicates the conditions in the real estate market are balanced.