The Calgary real estate market in 2025 presents a complex yet optimistic scenario. You can find further details and insights into Calgary’s real estate market trends and forecasts for 2025 at the following link: https://www.chamberlaingroup.ca/real-estate/alberta/calgary/market-trend-forecast-guide/. Here’s a more detailed exploration based on the available forecasts and data:
Market Dynamics
- Sales Trends: The Calgary Real Estate Board (CREB) has predicted that housing sales will significantly outpace long-term averages by over 20%. This robust demand is attributed to favourable economic conditions, such as low lending rates and continuous employment growth, which encourage home buying. The improvement in housing supply due to new constructions is also expected to balance the market demand.
- Price Development: Although the market is moving towards balance, there are segment-specific dynamics. Detached homes are experiencing steady price growth, with median prices in February 2025 reaching $720,000. This represents a modest year-over-year increase, reflecting a market that is cooling yet remains buoyant. Apartments have also seen price increases, with median values rising annually and even more sharply month-over-month, which could indicate a growing interest in more affordable housing options as single-family home prices climb.
Economic Indicators
- Population and Housing Needs: Calgary’s population growth continues to be a driving factor for housing demand. With a significant yearly population increase, the construction sector is under pressure to keep up, averaging new starts that are not fully meeting the increased demand for housing. This disparity between housing starts and population growth could tighten the market further, supporting price stability or even increases in less supplied segments.
- Affordability and Market Access: Despite the rising prices, Calgary homes are still more affordable compared to hot markets like Toronto and Vancouver. However, the city faces challenges in terms of affordability, particularly for renters and first-time buyers, as prices have increased substantially over the past five years.
Potential Market Corrections: High interest rates might pose a risk, potentially pricing out some buyers and leading to a cooling in demand. However, the underlying economic strength and low inventory levels suggest that any correction might be mild and short-lived. The market is also buffered by ongoing interest from out-of-province buyers who find Calgary a more affordable option compared to other major cities.
Strategic Recommendations
- For Buyers: Timeliness is crucial in a competitive market like Calgary. Buyers should consider neighborhoods that align with their needs and budget, keeping an eye on emerging areas that might offer better value. Pre-approval for mortgages in a higher interest rate environment will clarify purchasing power and facilitate quicker transaction completion.
- For Sellers: With sustained demand, 2025 could be a favourable year for selling properties in Calgary. Sellers should focus on enhancing their homes’ appeal through renovations and staging to capitalize on the competitive market conditions. Timing the market to list properties during peak demand seasons like spring can also maximize returns.
- For Investors: Diversifying investments to include both residential and rental properties could be wise, particularly in growing suburbs. Monitoring economic indicators and staying adaptable to shifting market conditions will be key to maximizing investment returns in Calgary’s dynamic real estate landscape.
In conclusion, Calgary’s real estate market in 2025 is shaped by a combination of robust demand, evolving supply dynamics, and broader economic factors. Stakeholders should remain informed and agile to navigate this promising yet complex market effectively.
