Posted on
February 3, 2025
by
Team Jillain
By CREB®
Following three consecutive years of limited supply choice, inventory levels in January rose to 3,639 units. While the 70 per cent year-over-year gain is significant, inventory levels remain lower than the over 4,000 units we would typically see in January.
Inventories rose across all property types, with some of the largest gains driven by apartment-style condominiums.
Overall sales in 2024 were just shy of last year’s levels, as gains for higher-priced homes offset pullbacks in the lower price ranges caused by supply challenges.
“Supply levels are expected to improve this year, contributing to more balanced conditions and slower price growth,” said Ann-Marie Lurie, Chief Economist at CREB®. “However, the adjustment in supply is not equal amongst all property types. Compared with sales, we continue to see persistently tight conditions for detached, semi-detached and row properties while apartment condominiums show signs of excess supply for higher priced units.”
Citywide, the months of supply reached 2.5 months in January, an improvement over the one month of supply reported last year, but it is still considered low for a winter month. The month of supply ranged from under two months for semi-detached properties to 3.5 months for apartment-style units.
Rising supply resulted from a boost in new listings compared to sales. New listings rose to 2,896 units in January, compared to 1,451 sales. Sales in January were down by 12 per cent compared to last year. However, even with a pullback in sales, levels remained nearly 30 per cent higher than levels typically recorded in January.
The total residential benchmark price in January was $583,000, which is relatively stable compared to levels reported at the end of last year and nearly three per cent higher than last January. Price growth ranged across districts within the city as well as property types.
Detached
Driven by gains from homes priced above $600,000, new listings reached 1,228 units in January, which is 29 per cent higher than last year. At the same time, sales activity slowed to 674 units, which brought levels in line with long-term trends. The improvement in new listings relative to sales did help support inventory gains. However, the 1,448 units in inventory are still nearly 27 per cent lower than levels we traditionally see in January, and the months of supply remained relatively low at just over two months.
While conditions are not as tight as last year, there is some variation within the city districts as more balanced conditions are taking shape in the City Centre and North East districts. In January, the unadjusted benchmark price was $750,800, slightly higher than last month and seven per cent higher than last January. On a seasonally adjusted basis, prices have remained relatively stable since the second half of last year.
Semi-Detached
Like other property types, gains in new listings relative to sales helped support some gains in inventory levels. While the semi-detached sector represents a relatively small share of activity in our market, sales in January did improve over last year, keeping the months of supply just below two months. Within the city, there is some significant variation, as the City Centre, North East, and West districts are all reporting near or above three months of supply, while all other districts have less than two months of supply.
The unadjusted benchmark price in January was $673,600, slightly lower than last month but over eight per cent higher than levels reported last January. The districts with higher months of supply also reported some modest monthly price declines, offsetting stable to modest gains in the North, North West, South, South East, and East districts.
Row
January reported a boost in new listings compared to sales activity. This caused inventory levels to rise to 589 units, more than double the near-record low levels reported last January. The recent rise in new listings has helped bring inventories to levels that are more consistent with long-term trends. At the same time, the months of supply also improved, pushing above two months, a trend that started to play out over the second half of last year.
Improving supply relative to sales has taken some of the pressure off home prices, but not consistently across the city. Citywide, the unadjusted benchmark price was $444.900, slightly lower than last month and nearly five per cent higher than last year. While prices are higher than last year across all districts, the largest monthly adjustment occurred in the North East district.
Apartment Condominium
Sales in January slowed to 370 units over last year's record high for the month. At the same time, new listings reached 922 units, a new high for January. The gain in new listings relative to sales caused inventories to rise to 1,2,95 units. While sales have remained relatively strong, the gain in supply has pushed the months of supply up to 3.5 months. This is much higher than the levels seen over the past three years but nowhere near the nine months reported in January prior to the pandemic.
Improved supply choice has weighed on prices over the past five months. In January, the unadjusted benchmark price was $331,400, slightly lower than last month but still five per cent higher than last year's levels. Like other property types, the level of adjustment varies across the city. The largest monthly declines occurred in the North, West and South districts.
The Calgary real estate market in January 2025 experienced notable shifts, with increasing inventory and fluctuating sales across various property types. While new listings surged, sales saw a moderate decline, impacting supply levels and price trends.
Sales and Inventory Trends Total sales in January 2025 reached 1,451, marking a 12.01% decline compared to January 2024. The total sales volume also decreased by 6.50% to $877.9 million. Meanwhile, new listings rose significantly by 35.52%, reaching 2,896, leading to an inventory increase of 68.63%. Consequently, the months of supply climbed from 1.31 to 2.51, reflecting a 91.64% increase, signaling a shift toward a more balanced market.
Price Movements Despite increased inventory, prices demonstrated resilience. The benchmark price increased by 2.79%, reaching $583,000, while the median price saw a more substantial rise of 9.46% to $572,500. The average price also appreciated by 6.26% to $605,026.
Regional Breakdown
City Centre:
Sales: 674 (-8.05%)
Benchmark Price: $750,800 (+7.03%)
Inventory: 1,448 (+44.94%)
Months of Supply: 2.15 (+57.63%)
Northwest Calgary:
Southeast Calgary:
Northeast Calgary:
Property Type Analysis
Detached Homes: Sales fell 8.05% to 674 units, with the benchmark price increasing 7.03% to $750,800.
Apartments: Sales dropped 24.18%, but benchmark prices increased 5.31% to $331,400.
Semi-Detached Homes: Sales rose 22.14%, and prices surged 8.31% to $673,600.
Row Homes: Sales declined 16.84%, but prices increased 4.86% to $444,900.
Market Outlook The Calgary housing market in early 2025 shows a shift from the extreme seller’s conditions of previous years toward a more balanced market. Increased inventory levels give buyers more choices, while price growth remains steady due to ongoing demand. If new listings continue to outpace sales, price growth may stabilize further in the coming months. However, the strong price appreciation in certain segments, particularly semi-detached homes, suggests ongoing demand in specific property types.
Conclusion The Calgary real estate market in January 2025 presented a mixed performance. Rising inventory levels have led to a slight slowdown in sales activity, but price growth remains positive. Buyers have more options, and sellers may need to adjust expectations in response to a more balanced market. The overall trend indicates a cooling market compared to the rapid growth of previous years, setting the stage for a potentially more stable year ahead.
