Market Report: Supply on the Rise, But Not Across All Price Ranges
As we transition into winter, Calgary’s housing market is aligning with typical seasonal trends, with activity slowing compared to the fall. Yet, year-over-year demand remains relatively strong. Not all property types are experiencing the same performance, with detached and semi-detached homes seeing an uptick in activity, particularly in late November and early December. In contrast, sales of row homes and apartments have slowed.
The real story lies in supply. Inventory has risen significantly year-over-year, with a 45% increase. Despite this jump, inventory levels remain well below long-term averages for Calgary and its surrounding areas.
“Housing supply has been a challenge over the past several years due to the sudden rise in population,” said Ann-Marie Lurie, Chief Economist at CREB®. “Rising new home construction has bolstered supply in rental, new home, and resale ownership markets. However, supply improvements vary significantly by location, price range, and property type.”
Calgary continues to favor sellers, with just over two months of inventory citywide. However, the condo market appears to be edging toward a short-term balanced market. Over the past year, condos and row homes have delivered strong price gains of 7–9%, while Calgary’s benchmark price has increased by nearly 4%. Seasonally adjusted prices have held steady over the last four months, signaling a more balanced market heading into the end of the year and Q1 of 2025.
Interest Rates and the 2025 Market Outlook
With interest rates forecast to continue decreasing into the first half of 2025, we expect this will ignite Calgary’s spring market early, sustaining momentum through the start of summer. Lower borrowing costs will likely attract more buyers, further driving demand in many market segments.
Opportunities for Sellers and Buyers
For sellers and buyers considering waiting until spring, now might be the time to act. With certain property segments and market areas experiencing low inventory and rising demand, listing your home now could be advantageous. Additionally, buyers are benefiting from improved conditions compared to earlier this year.
Looking ahead, the combined impact of lower interest rates and shifting market conditions suggests a busy and competitive 2025. If you’re planning your next move, whether buying or selling, reach out to explore the opportunities that may be right for you.
Summary of Product Types and Areas
Detached Homes
- Sales rise for homes above $600,000, with limited supply in lower price ranges.
- 85% of inventory is priced above $600,000.
- Months of supply: Over 2 months overall; higher for homes above $700,000, lower below $700,000.
- Benchmark price: $750,100 (7% increase YoY).
- Price growth slower in areas with more competition from new builds.
Semi-Detached Homes
- November sales: 173 (YoY improvement, 5% YTD growth).
- Supply gains ease earlier tight conditions, now at 2 months of supply.
- Benchmark price: $675,100 (8% increase YoY).
- Price range: $926,800 in City Centre to $409,300 in the East district.
Row Homes
- November sales: Improved YoY, 3% YTD growth.
- High demand over past 3 years; inventory levels improving but remain tight (~2 months of supply).
- Benchmark price: $454,200 (7% increase YoY, 15% YTD average price increase).
- Price range: $620,000 in City Centre to under $400,000 in NE and East districts.
Apartment Condominiums
- November sales: 429 (below last year’s record, 47% above long-term trends).
- Supply: 1,482 units, now above long-term trends; most gains in the $300,000–$500,000 range.
- Months of supply: Above 3 months.
- Benchmark price: $337,800 (9% increase YoY, slight decline MoM).
Regional Market Highlights
Airdrie
- Inventory: 344 units, returning to pre-2020 levels (84% detached and row homes).
- Benchmark price: $543,300 (4% increase YoY); apartments saw the largest gains (16%).
Cochrane
- New listings: Record high for November; strong detached sales prevent inventory growth.
- Benchmark price: $568,600 (4% increase YoY).
- Largest price gains in apartment-style homes.
Okotoks
- Inventory: Low due to limited new listings (47 units) and steady sales (52 units).
- Benchmark price: $624,000 (6% increase YoY); detached homes at $707,300.
- Row-style properties reported the highest price growth.
