Calgary and Area Real Estate Market Update – December 2024
December wrapped up 2024 on a strong note, highlighting robust sales and steady price growth throughout the year.
The month recorded 1,322 sales, a slight 3% decrease from December 2023, but still nearly 20% higher than long-term trends. While the second half of the year started slower, activity picked up in the final two months, thanks in part to a December interest rate reduction and changes to Canadian lending rules introduced on December 15. These adjustments spurred buyer activity and stabilized home values, setting the stage for what is expected to be an active real estate market in Q1 2025, with further rate cuts on the horizon.
“Population gains over the past several years have supported sales activity that has outperformed long-term trends. In 2024, sales would likely have been higher if there was more supply choice, especially in the lower price ranges,” said Ann-Marie Lurie, Chief Economist at CREB®. “That being said, we did start to see shifts occurring in the market in the second half of the year as supply levels started to improve for higher-priced homes.”
Key Trends from the Second Half of 2024
- New Inventory: Both resell homes and new product inventory continue to enter the market, creating more options for buyers.
- Better Rental Options: Improved availability in the rental market played a role in balancing demand.
- Diverse Market Conditions: Market activity varied significantly based on location, price range, and property type.
For residential properties, the benchmark price rose by 7% year-over-year, further emphasizing the strength of Calgary’s real estate market.
Advice for Sellers
If you’re considering selling, early 2025 presents a strategic opportunity. Inventory levels still remain low in many areas, creating favorable conditions for sellers to list before competition increases in the spring. Properties are moving faster now compared to Q3 2024, and buyers remain active in their search for well-priced homes.
Advice for Buyers
If you’ve been waiting for interest rate cuts, now is the time to act. With further price gains expected in Q1 and Q2 of 2025, waiting could mean paying more down the line. Take advantage of current market conditions and secure your home before prices climb further.
December’s activity signals a promising start to 2025 for Calgary and surrounding areas. Whether you’re buying or selling, staying informed and acting strategically will help you make the most of the market’s momentum.
Calgary and Surrounding Area Real Estate Market Highlights – 2024
Detached Homes
- Sales Activity: Year-over-year gains in sales, especially for homes over $600,000, driven by easing lending rates.
- Inventory Levels: Improved inventory in city limits, though conditions varied:
- Balanced Markets: City Centre, North East, North.
- Seller’s Market: Remaining districts.
- Price Growth:
- Annual increase of nearly 11%, faster than 2023.
- Strongest growth in North East and East districts, especially during spring due to low supply.
Semi-Detached Homes
- Sales Activity: 2,355 sales in 2024, a 5% annual increase, with demand driven by limited supply of lower-priced detached homes.
- Inventory Levels: Improved slightly in higher-priced areas, particularly the City Centre (3 months of supply in Q4).
- Price Growth:
- Annual benchmark price up nearly 11% to $669,042.
- Gains ranged from under 10% in City Centre and West to over 15% in North East and East.
Row Homes
- Sales Activity: 4,647 sales, a 2% increase, marking the second-highest total on record.
- Inventory Levels: Up 18% year-over-year, especially for homes priced over $400,000.
- Price Growth:
- Annual benchmark price rose 14%.
- Gains ranged from 12% in City Centre to over 20% in North East and East.
Apartment Condominiums
- Sales Activity: 7,568 sales, down 4% from a record-setting 2023, but still the second-highest year on record.
- Inventory Levels: Increased supply balanced the market by year-end.
- Price Growth:
- Annual benchmark price rose 15%.
- Gains ranged from 11% in City Centre to over 20% in North East, East, and South districts.
Regional Markets
Airdrie
- Sales Activity: 1,951 sales, a 4% increase supported by rising new listings.
- Inventory Levels: Improved in late 2024, pushing months of supply above two months by Q4.
- Price Growth:
- Annual benchmark price up nearly 8%.
- Faster growth for affordable, higher-density homes.
Cochrane
- Sales Activity: Strong sales throughout the year, though Q4 saw a shift toward balanced conditions as new listings increased.
- Inventory Levels: Slight gains in Q4 but remained below long-term trends.
- Price Growth:
- Annual benchmark price rose nearly 9% to $565,808.
Okotoks
- Sales Activity: Nearly 8% growth, supported by a 16% increase in new listings.
- Inventory Levels: Still half the typical levels, maintaining a seller’s market.
- Price Growth:
- Benchmark price up nearly 8% to $615,708.
- Semi-detached and row homes experienced tighter conditions, with price growth exceeding 11%.
