Calgary Real Estate Market Update: February 2025 Trends & Insights
The Calgary real estate market continues to shift, with inventory levels rising and sales activity adjusting to new trends. While demand remains above historical averages, recent market dynamics suggest a gradual transition from the heated seller’s market of the past few years. Whether you’re buying or selling, understanding these trends can help you make informed real estate decisions.
Market Overview: Sales Stay Above Long-Term Trends Despite Declines
February saw a 76% increase in inventory levels compared to last year, reaching 4,145 units. The rise in supply was most prominent in homes priced under $500,000, primarily driven by growth in the apartment and townhouse sectors. While overall months of supply reached 2.4, apartment-style homes had the highest inventory levels at 3.1 months, offering more choices for buyers.
Sales activity in February totaled 1,721 transactions, remaining above historical averages but down 19% from last year. The market also saw 2,830 new listings, aligning with typical seasonal trends. However, with a sales-to-new listings ratio of 61%, the pace of sales has slowed, offering buyers more time and options to find their perfect home.
“While inventory has grown, we are seeing fewer sales compared to February 2024. The seller’s market is easing, and price increases are slowing down, which is good news for buyers,” said Alan Tennant, President and CEO of CREB.
The benchmark price for all residential properties remained relatively stable at $587,600, reflecting a 1% increase year-over-year. Price variations occurred across different districts, with the East district experiencing the largest gains at over 3%.
Detached Homes: Inventory Rises as Sales Slow
Detached home sales slowed to 765 units, marking a 20% decline year-over-year. Meanwhile, new listings increased by 6%, pushing inventory levels up 61% from 2024 to 1,698 units.
Supply and demand varied across the city, with the City Centre and North East districts trending towards balanced conditions, while the South and North West districts remained supply-constrained at 1.6 months of inventory.
The benchmark price for detached homes rose to $760,500, reflecting a 5% annual increase, with the City Centre seeing the highest growth at 8%.
Semi-Detached Homes: Supply Growth Creates More Balance
New listings for semi-detached homes increased by 7% to 240 units, while sales declined 14% year-over-year to 165 transactions. This shift increased inventory levels by 46%, though supply remains below long-term trends.
Despite rising supply, the benchmark price climbed to $683,500, up 7% annually, with the City Centre and South districts leading the price gains at 8%.
Townhouses: More Inventory, But Still Tight Conditions
Townhouse sales dropped 9%, while new listings increased 4%, leading to a rise in inventory levels to 655 units, more than double last year’s supply. Despite this, inventory remains below historical averages.
The benchmark price for townhouses reached $446,880, increasing 3% year-over-year. The East district saw the strongest price growth at 12%, while the South and East districts continued to have the lowest months of supply at under 1.5 months.
Apartment Condominiums: Growing Supply Eases Market Pressure
Apartment sales hit 473 units, marking a 26% decline from last year. However, with 852 new listings, inventory surged 90% year-over-year, approaching record levels. The months of supply for apartments grew to 3.1 months, up 155% compared to 2024.
Despite the supply increase, the benchmark price for condos rose 4% to $334,200, with the West district experiencing the highest price growth at over 8%.
Regional Market Highlights
Airdrie
Sales in Airdrie dropped 9% to 123 units, while new listings increased by 23% to 225 properties. Inventory levels doubled year-over-year, reaching 345 homes, pushing the months of supply to nearly three months—the highest since pre-pandemic levels. Despite this shift, prices remained steady, with the benchmark price at $537,600, up 1.6% annually.
Cochrane
Sales in Cochrane increased to 75 units, while new listings rose to 126 homes, pushing inventory 48% higher than last year. The months of supply improved to 2.6 months, and benchmark prices climbed 5% to $577,100.
Okotoks
Okotoks saw 45 sales in February, a slight 4% decline from 2024. New listings increased by 7% but remained below typical February levels. Inventory recovered to 69 units, though still below long-term averages. Prices remained stable, with the benchmark price at $537,600, up less than 1% from last year.
What This Means for Buyers & Sellers
The Calgary real estate market is seeing a shift towards more balanced conditions. While demand remains strong, growing inventory is providing buyers with more opportunities. Sellers, on the other hand, should be mindful of pricing strategies and market trends to stay competitive.
As we move further into 2024, staying informed on market conditions will be crucial for making strategic real estate decisions. Whether you’re looking to buy or sell, having the right guidance can make all the difference.
📩 Need expert advice? Reach out to our team today for a personalized market evaluation or to explore available properties!
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