Calgary Real Estate Market Update: January Brings Hope, Balance, and Opportunities for 2025
As we step into 2025, Calgary's real estate market has shown a significant shift toward balance. After three years of tight supply and intense competition, January saw a rise in inventory levels that could reshape the market in the coming months. This blog will dive into all the important details, helping you understand how these changes can benefit both buyers and sellers. Let's explore the numbers, trends, and future outlook!
1. January Sees Major Inventory Boost: A New Dawn for Buyers and Sellers
Inventory levels in Calgary's real estate market rose dramatically in January, reaching 3,639 units. This marks a 70% increase compared to January 2024. While it’s still below the usual 4,000+ units that Calgary typically sees this time of year, this jump indicates a move towards healthier, more balanced market conditions.
Key Takeaways:
More Choices for Buyers: With more inventory on the market, buyers will have a broader selection of properties, reducing the frustration of bidding wars.
A Calmer Market: A balanced market means less pressure on prices, creating more reasonable and sustainable conditions for both buyers and sellers.
Growth Across Property Types: All property types saw increases in inventory, but apartment-style condominiums experienced some of the largest gains.
2. Balanced Market in Sight: Price Growth Slows, Stability Takes Over
Ann-Marie Lurie, Chief Economist at CREB®, states that supply levels are expected to improve throughout 2025, contributing to slower price growth and more balanced market conditions. This means that Calgary may be entering a phase of stability, where neither buyers nor sellers will face extreme pressure.
However, it's important to note that not all property types are experiencing equal shifts in supply:
Detached, Semi-Detached, and Row Homes: These properties continue to see tight conditions, especially in higher-demand areas.
Apartment Condominiums: There's a growing excess supply, especially for higher-priced units, creating opportunities for buyers in this sector.
3. Months of Supply: Still Low, But Improving—A Key Metric for Buyers and Sellers
In January, the months of supply reached 2.5 months citywide. While this is an improvement from the one month of supply reported last year, it’s still considered low for a winter month. Understanding this metric is crucial for both buyers and sellers:
What is ‘Months of Supply’? It measures how long it would take for current inventory to sell at the current sales pace. The lower the months of supply, the tighter the market.
Variation Across Property Types:
Semi-Detached Properties: These properties are still in high demand, with less than 2 months of supply.
Apartment Condos: On the other hand, these properties are seeing up to 3.5 months of supply, which is a sign that buyers have more options, especially in higher price ranges.
Why It Matters for You:
For Buyers: A higher months of supply for condos means you have more time and negotiating power, especially if you're looking for a condo.
For Sellers: If you own a semi-detached or detached home, you may still face strong demand, but balancing your expectations and being patient with price negotiations will be key.
4. Price Stability: A Steady Outlook with Subtle Growth
The total residential benchmark price in January was $583,000, reflecting a relatively stable market compared to the end of 2024, and a nearly 3% increase from January 2024.
However, it's essential to note that price growth has varied across districts, which means opportunities for buyers and sellers alike:
Detached Homes: Rising Above $600,000
New Listings: 1,228 units in January, a 29% increase from last year.
Sales: 674 units, slowing but still in line with long-term trends.
Inventory: 1,448 units, still 27% below typical January levels.
Benchmark Price: $750,800, reflecting a 7% increase from last year.
What This Means: While prices are climbing for detached homes, the rise in new listings is helping balance the supply-demand equation. This makes for a competitive but still manageable market for both buyers and sellers.
Semi-Detached Homes: More Listings, Price Stability
Benchmark Price: $673,600, up 8% from last year.
The semi-detached sector has seen some improvement in sales, helping stabilize inventory levels. While some areas of Calgary see slightly higher months of supply, prices have remained relatively stable.
Key Insight: Semi-detached homes are becoming a more viable option as new listings increase and inventory levels improve.
Row Homes: Consistent Growth Despite Shifting Conditions
Sales: Row homes experienced 2% growth in 2024, the second-highest total on record.
New Listings: A 18% increase in new listings, primarily for homes priced above $400,000.
Benchmark Price: Row homes saw a 14% price increase year-over-year, though conditions are starting to ease thanks to improved supply levels.
Opportunities for Buyers: Row homes in Calgary are becoming a more attractive option, especially in districts outside the City Centre, where prices are more reasonable.
Apartment Condominiums: A Buyer’s Market in the Making
Benchmark Price: $444,900, showing nearly a 5% increase from last year.
Inventory Boost: The rise in new listings compared to sales has pushed inventory levels to more long-term norms.
Buyer Opportunity: Apartment condos, especially in higher price ranges, are seeing growing supply, providing a window of opportunity for buyers to negotiate better deals, particularly in markets like the North East district, where monthly price adjustments have already started.
5. Regional Market Highlights: Airdrie, Cochrane, and Okotoks
Let’s look at some key areas outside of Calgary that are also seeing positive changes in the market:
Airdrie: Inventory and Prices on the Rise
Benchmark Price: $537,300, up nearly 4% from last year.
Months of Supply: Now above 2 months, a significant improvement from previous years where supply was limited to under 2 months.
Opportunity: With increased supply, Airdrie offers a balanced market where buyers and sellers can both thrive.
Cochrane: A Steady and Growing Market
Benchmark Price: $565,900, up 5% from last year.
Inventory Levels: Improved compared to past years, with above 2 months of supply.
Opportunity: Cochrane’s market is starting to see more inventory, giving buyers a chance to find the perfect home without the intense competition that previously existed.
Okotoks: A High-Demand Market
Benchmark Price: $614,900, a slight increase over last month and up nearly 5% from last year.
Supply: Still relatively low, with only 68 units available in January.
Opportunity: Okotoks is still a seller’s market, but with improved inventory, buyers can expect less pressure compared to previous years.
What’s Next for the Calgary Market? The Year Ahead
The market is heading into a more balanced, stable phase, with greater opportunities for both buyers and sellers. The increase in inventory levels across all property types, coupled with moderate price growth, offers a more optimistic outlook for 2025.
For Buyers: This is an excellent time to explore the market with more options and less competition. You’ll find opportunities in both detached homes and apartments, especially as higher-priced condos face more supply.
For Sellers: While there is still demand for properties, especially in the detached and semi-detached sectors, balancing price expectations and being patient with negotiations is key to ensuring a successful sale.
Let’s work together to navigate this exciting market and find the perfect property for you! Whether you're buying or selling, 2025 is shaping up to be a year of opportunities.
Final Thoughts The Calgary real estate market is in the midst of a positive transformation. The combination of increased supply, price stability, and more balanced conditions makes this a fantastic time to engage with the market. Reach out today, and let’s make your real estate goals a reality this year.
Feel free to reach out to me directly. Let’s make your real estate goals a reality