Calgary’s February Housing Market Update

One of the primary drivers of this shift is the increase in housing supply. Reports from late 2024 and early 2025 consistently highlight a surge in new listings, particularly in the condo segment. A November report by Edge Realty Analytics noted a strong flow of new listings, rising 22% year-over-year, with condos experiencing an even more significant increase of 30%. This trend continues into January 2025, with new listings up 35% year-over-year. Total active listings are at four-year highs after surging 70% year-over-year in January and are now only slightly below the long-term average.

Calgary Rise in Supply

Construction activity is driving the increase in supply. While dwellings under construction continue to rise overall, a closer look reveals a critical distinction. When purpose-built rentals are excluded, the number of “homeowner” dwellings under construction in Calgary is at its highest since 2007. This metric is important because it focuses on the potential resale inventory entering the market as these projects are completed.

The rise in supply has a direct impact on market dynamics. The sales-to-new listings ratio, a key indicator of market balance, has ticked down in Calgary. While a ratio of 62% in late 2024 still indicated a seller’s market. This is a move away from the higher ratios seen in previous years. By January 2025, this ratio slipped below 60% for the first time since 2020. This gradual shift suggests that Calgary is trending towards more balanced conditions. This is where buyers have increased negotiating power.

Despite these shifts, the Calgary market remains relatively robust. In November 2024, sales saw a 9% increase month-over-month. This was there although the year-over-year increase was a more modest 1%. Prices have been relatively stable, with Edge Realty reports noting that prices remained flat. This was there for the two months leading up to November 2024. The first time since 2022 house prices were up 4.3% year-over-year in January 2025.

Furthermore, monthly mortgage payments on new purchases are trending lower. Plus, it remains below the national average. This contributes to relative affordability. This suggests a moderating market rather than a declining one. Plus, with ongoing demand supported by reasonable affordability.

Looking ahead, Calgary will likely see a continued increase in resale inventory. This will come as new supply is completed, further contributing to the market’s normalization. While the long-term forecast suggests that Calgary will trade at a premium again. This is according to Edge Realty. This is a longer-term view, with more immediate trends indicating a move towards a more balanced market.