Calgary’s real estate market in early 2025 continues to exhibit a complex yet dynamic landscape, marked by rising prices, shifting buyer behaviour, and increasing inventory. After several years of rapid growth and high demand, the market is now showing signs of stabilization, though demand remains strong in many segments. For additional insights and long-term forecasts, you can also refer to https://www.chamberlaingroup.ca/real-estate/alberta/calgary/market-trend-forecast-guide/. Here’s an in-depth look at how the Calgary housing market is evolving across different property types.
Overall Market Overview
The Calgary real estate market is transitioning into a more balanced state after a prolonged period of tight supply and aggressive price growth. The average home price has climbed to $612,838, reflecting a 5.1% year-over-year increase, while the benchmark price which adjusts for different housing attributes has seen a smaller rise of 0.9%, settling at $587,600.
While sales volume dipped by 19% compared to February 2024, the market remains active and well above long-term averages, signalling that buyer interest is still healthy, even with higher borrowing costs and shifting market conditions.
Increased Inventory and Listings
One of the most notable trends in Calgary’s 2025 market is the sharp rise in housing inventory. New listings increased 4.4% year-over-year, bringing the total inventory up 75% from last year to 4,183 active units. This increase has pushed the months of supply — a key indicator of market balance — to 2.4 months, up from under 1.5 months in previous years. While still technically a seller’s market, this change indicates a growing choice for buyers and reduced competition for listings.
Detached Homes: Price Growth Amid Slower Sales
Detached homes remain a popular choice in Calgary, especially for families. However, this segment is experiencing a 20% drop in sales, with 765 units sold in February 2025. Despite the decline, prices continue to rise, albeit more moderately than in recent years.
- Average Price: $804,439 (up 3.5% YoY)
- Benchmark Price: $760,500 (up ~5% YoY)
- Inventory Growth: 61% increase in active listings
- Months of Supply: 2.2
The increase in supply is helping cool the bidding wars that dominated the detached market in 2021–2023, offering more breathing room for buyers.
Semi-Detached Homes: Strong Price Appreciation
The semi-detached segment saw a 14% decrease in sales, but price growth remains strong. This category offers a more affordable alternative to fully detached homes while still providing space and privacy.
- Average Price: $719,393 (up 7.9% YoY)
- Benchmark Price: $683,500 (up 6.9% YoY)
- Inventory Growth: 46%
- Months of Supply: 2.0
These properties are especially appealing to move-up buyers and young families who want a yard and more living space without the price tag of a detached home.
Townhouses: More Supply, Still Competitive
Townhouse sales declined by 9.4%, but they remain in demand due to affordability and modern design. The doubling of inventory is a welcome trend for buyers who struggled with limited options in the past.
- Average Price: $482,614 (up 3.3% YoY)
- Benchmark Price: $446,800 (up 2.8% YoY)
- Inventory: More than doubled YoY
- Months of Supply: 2.1
With more inventory hitting the market, this could be a sweet spot for first-time buyers or investors looking for rental-friendly properties.
Condominiums: Affordable, But Slower Market
Condominiums have seen the steepest drop in sales, down 26% year-over-year, as rising interest rates and increased supply weigh on this market segment. Despite this, average and benchmark prices are still climbing.
- Average Price: $353,334 (up 6.3% YoY)
- Benchmark Price: $334,200 (up 4% YoY)
- Inventory Growth: Up 90% YoY
- Months of Supply: 3.1
With the highest months of supply among all property types, buyers now have more negotiating power in this segment. Condos remain attractive to young professionals, retirees, and investors due to their lower price point and location flexibility.
Market Drivers: What’s Influencing Trends in 2025
Several key factors are shaping the Calgary housing market:
- Interest Rates: The Bank of Canada has kept interest rates elevated, which has impacted affordability, particularly for first-time buyers. While buyers have adapted somewhat, many are still cautious.
- Population Growth: Alberta’s strong job market and relatively affordable cost of living continue to attract newcomers from other provinces, keeping demand buoyant.
- Inventory Recovery: After years of tight supply, builders and homeowners are finally contributing to more active listings, helping stabilize the market.
- Economic Confidence: Calgary’s diverse and growing economy, bolstered by energy, tech, and healthcare sectors, supports long-term real estate confidence.
What to Expect in the Coming Months
As we head further into 2025, the Calgary housing market is likely to continue balancing out:
- Buyers will benefit from increased choice and less urgency to bid aggressively.
- Sellers will need to price competitively and possibly offer incentives as the market cools slightly.
- Investors may find opportunities in the condo and townhouse markets, where prices are still climbing but competition is less intense.
Barring any major economic shifts, Calgary’s real estate market is on track for steady though slower growth, providing stability for both buyers and sellers.
The Calgary real estate market in 2025 is moving from a red-hot seller’s market to a more balanced, sustainable environment. While prices are still rising, the pace has slowed, and increasing inventory is offering relief to buyers. The shift may open the door for more informed, less pressured transactions a welcome change after years of intense market activity.
