Calgary’s real estate market, once one of Canada’s fastest-growing, is showing signs of slowing down as home sales dropped by 10% in the last quarter of 2024.
After two years of record-breaking price increases and intense buyer activity, the city’s housing market is now adjusting to a new reality. Inventory levels are rising, demand is softening, and buyers are taking a more cautious approach.
This article explores what’s behind Calgary’s recent slowdown, how the market is shifting in 2025, and what buyers and sellers can expect in the coming months.
The Numbers: A Changing Market
Calgary recorded 4,850 home sales in Q4 2024, marking a 10% decline compared to the same period in 2023. Despite the drop in sales, home prices remain relatively stable, with the average home price sitting at $540,000, reflecting a 2.4% increase year-over-year. Detached homes continue to dominate the market, with an average price of $650,000, while condos remain the most affordable option, averaging $320,000.
New listings in Calgary rose by 15%, giving buyers more choices and reducing the bidding wars that were common in 2022 and early 2023. Properties are now sitting on the market for longer, with the average time to sell increasing from 21 days to 32 days.
What’s Causing the Slowdown?
One of the main reasons for Calgary’s cooling market is the increase in housing supply. More homeowners are listing their properties, and developers have been adding new inventory, particularly in suburban areas like Airdrie and Cochrane. With more choices available, buyers no longer feel pressured to make quick decisions, leading to a more balanced market.
Interest rates are another factor. While the Bank of Canada has begun to ease rates, borrowing costs are still higher than they were during Calgary’s housing boom. Many buyers are waiting for further rate cuts before making a purchase, contributing to the slower sales numbers.
Economic conditions are also playing a role. While Calgary’s job market remains strong, particularly in the energy and tech sectors, some buyers are adopting a wait-and-see approach amid concerns about inflation and wage growth. First-time buyers, in particular, are finding it harder to afford rising mortgage payments, even as prices stabilize.
A Buyer’s Shift in Strategy
For the past two years, buyers in Calgary faced intense competition, with many having to submit offers above asking price just to secure a home. Now, with sales slowing and inventory increasing, buyers have more room to negotiate. Many are taking their time to compare listings, looking for properties that offer the best value.
Samantha and David, a young couple who had been renting in Calgary’s Beltline district, had been searching for a home throughout 2023 but kept losing out to higher bids. In early 2025, they finally purchased a three-bedroom townhome in Mahogany for $520,000, securing a deal below the initial asking price. With fewer bidding wars, they were able to negotiate better terms, including a closing date that worked for their schedule. Their experience highlights the shift in Calgary’s market, where buyers are regaining control and finding more opportunities.
How Sellers Are Responding
For sellers, Calgary’s slowing market means adjusting expectations. While home prices are not dropping significantly, properties are taking longer to sell, and overpriced listings are sitting on the market.
Some sellers are choosing to price their homes more competitively, while others are investing in minor renovations to attract buyers. Well-maintained homes in desirable neighborhoods like West Springs, Aspen Woods, and Evanston are still selling quickly, but those in less in-demand areas are requiring more effort to stand out.
Sellers who were expecting the rapid price increases seen in previous years may need to reassess their strategy. Staging homes, improving curb appeal, and working with experienced real estate agents to position listings effectively are becoming more important than ever.
The Rental Market’s Role in the Slowdown
Calgary’s rental market remains strong, with rents rising by 5.2% year-over-year and vacancy rates staying low. Many first-time buyers who are priced out of the ownership market are continuing to rent instead, adding pressure to the rental sector. Investors are capitalizing on this trend, with some choosing to rent out properties rather than sell, further increasing available housing stock.
Rental demand is particularly high in Downtown Calgary, Kensington, and Marda Loop, where young professionals and students are driving competition for available units. The strength of the rental market is creating an interesting dynamic where some would-be sellers are opting to hold onto their properties for rental income rather than listing them for sale.
What’s Next for Calgary’s Housing Market?
While sales have slowed, Calgary’s real estate market remains stable compared to other major cities like Toronto and Vancouver. Unlike those markets, Calgary’s home prices are still relatively affordable, and demand remains strong in many segments.
Interest rate cuts in 2025 could bring more buyers back into the market, particularly if borrowing becomes significantly cheaper. However, if inflation remains a concern and rate cuts are slower than expected, buyers may continue to wait, keeping the market balanced rather than favoring sellers.
Population growth will also play a role in shaping the market’s future. Calgary has been one of Canada’s fastest-growing cities, attracting both domestic and international migrants due to its affordability and strong job market. This steady demand for housing will likely prevent any major price drops, even as sales activity fluctuates.
Calgary’s Market Enters a New Phase
Calgary’s real estate market is moving away from the rapid growth of the past two years and into a phase of moderate, more sustainable activity. Buyers are regaining control, sales are slowing, and inventory is increasing, creating a more balanced environment.
For buyers, this shift presents an opportunity to find homes without the intense competition of previous years. For sellers, adjusting to the new conditions by pricing appropriately and enhancing property appeal will be key to securing sales. Investors, meanwhile, will continue to benefit from the strong rental market, which remains a driving force in Calgary’s housing sector.
The next few months will be crucial in determining how Calgary’s real estate market shapes up for the rest of 2025. Whether demand rebounds or remains steady will depend largely on economic conditions, interest rate movements, and continued population growth. Regardless of short-term fluctuations, Calgary remains one of Canada’s most attractive housing markets, offering long-term stability and affordability compared to other major cities.
