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The Calgary real estate market continues its remarkable evolution in 2025, building on momentum that began several years earlier. After a prolonged period of stagnation following the oil price collapse of 2014-2015, Calgary's housing market has now established itself as one of Canada's most dynamic urban centers for property investment.

Current Market Conditions

Calgary remains predominantly a seller's market in early 2025, though with signs of gradually increasing balance. Housing inventory levels are approximately 15% higher than this time last year, providing buyers with more options but still not enough to fully satisfy demand. Properties in desirable neighborhoods continue to sell quickly, often receiving multiple offers, though the frenzied bidding wars of 2023-2024 have somewhat subsided. The average days on market has increased from 22 days in 2024 to 28 days currently, indicating a slight cooling in market temperature.

Price Trends

Calgary's home prices have maintained their upward trajectory, though at a more moderate pace than the previous two years. Single-family detached homes have appreciated by approximately 6.8% year-over-year, compared to the 11.2% increase observed in 2024. The average single-family home price now sits at approximately $687,000, while condominiums have seen more modest gains of about 4.5%, with an average price of $312,000.

Neighborhood trends show interesting divergence. Inner-city communities like Beltline, Inglewood, and Kensington continue to command premium prices due to lifestyle amenities and proximity to downtown. Meanwhile, newly developed areas in the north and southeast are seeing robust growth as infrastructure improvements enhance their appeal. Established suburbs like Evergreen and Auburn Bay have maintained steady appreciation, while some older communities with aging housing stock have experienced more modest gains.

Factors Influencing the Market

Several key factors are driving Calgary's real estate narrative in 2025:

1. Migration Patterns: Calgary continues to benefit from substantial interprovincial migration, particularly from Ontario and British Columbia, as remote workers and young professionals seek more affordable housing options while maintaining high-quality lifestyles.
2. Interest Rates: After the Bank of Canada's modest rate reductions in late 2024, buyers have found slightly improved affordability, though rates remain historically moderate.
3. Economic Diversification: Calgary's economy has continued its transition beyond oil and gas dependence, with growing technology, renewable energy, and healthcare sectors contributing to employment stability and housing demand.
4. Supply Chain Improvements: Construction costs have stabilized compared to previous years, allowing developers to proceed with projects that had been delayed.

Outlook for the Future

The remainder of 2025 and early 2026 points toward continued market stability with modest growth. Most analysts predict housing appreciation to continue at 4-6% annually, with potential moderation if inventory levels continue to improve. The luxury market may experience some volatility as global economic factors affect high-net-worth buyers.

Calgary appears positioned for sustainable long-term growth as its reputation as a livable, relatively affordable major Canadian city continues to attract newcomers. However, affordability concerns are beginning to emerge, particularly for first-time buyers, which may prompt municipal policy responses in the coming year.

Advice for Buyers and Sellers

For sellers, the market remains favorable, though proper pricing strategy has become increasingly important as buyers grow more discerning. Professional staging and marketing now make meaningful differences in final sale prices.

Prospective buyers should prepare financially before entering the market, securing pre-approvals and being ready to make decisive offers. While the market has cooled slightly from its peak frenzy, desirable properties still move quickly. Rather than trying to time the market perfectly, buyers should focus on finding properties that meet their long-term needs and fall within their financial comfort zone.

First-time buyers might consider emerging neighborhoods or condominiums as entry points into the market, while move-up buyers can leverage their existing equity in what remains a favorable environment for transitions within the market.