In 2024, Calgary’s real estate market demonstrated remarkable resilience and growth, driven by factors such as population influx, stable employment rates, and a surge in new home constructions. These elements collectively contributed to a dynamic housing landscape, setting the stage for anticipated trends in 2025.

Key Growth Indicators in 2024

• New Home Construction: Virtually all real estate measurables for Calgary & Area fall into the “UP” category. 2024 was a record-breaking year with 22,652 new home starts, up 15.7% from the year before.
• Prices: Prices peaked in June 2024 at nearly 15% higher than the year before, finishing in December at 7.43% over 2023.
• Inventory/Months of Supply: 2025 is starting with a 38% increase in inventory and 2.26 total months of supply, welcomed by buyers seeking more options and a less stressful buying process.
• Days on Market (DOM): The average Days on Market for listings in Calgary finished the year at 37, a 26% increase from 2023.
• Population Growth: Calgary’s population reached approximately 1,665,000 in 2024, reflecting a 1.55% annual increase, equating to about 70 new residents each day.
• Unemployment Rate: Unemployment levels remained virtually flat in 2024 compared to 2023, with a modest increase from 7.6% to 7.8%. Top growth sectors for new jobs include the construction industry and retail trade.

Areas of Decline in 2024

• Interest Rates: The Bank of Canada reduced its policy interest rate by 25 basis points to 3.00% in January 2025, marking the fifth consecutive cut aimed at stimulating the economy.
• Sales Volume: Overall, 2024 sales were nearly on par with 2023, as gains in higher-priced homes balanced declines in more affordable segments, which faced persistent supply constraints.
• Net Migration Rate: Although Calgary (and Alberta) is still seeing its population expand, the rate** at which we are growing is slowing. 2024 saw a provincial net migration rate of 4.4%, with Q4 representing over a 20% reduction from the year before. 2025 is forecasted to see only 1.9% growth Alberta-wide.

Anticipated Trends in Calgary for 2025**

Calgary’s housing market is expected to stay strong in 2025, with sales forecasted 20% above long-term trends. While we enter 2025 in a continued seller’s market, we are trending into more balanced conditions with increasing inventory, more new build options, and lower interest rates. Slowing migration will also create less competition for buyers, and trends are already showing that the time it takes to sell a property is slowly increasing as well.

Overall, the market sentiment in Alberta is one of positivity. With it being an election year, there is always some sense of uncertainty from political impact; however, Alberta is well-positioned for investment, job creation, and security. Prices across all residential sectors are anticipated to increase by approximately 3% in 2025.

Anticipated Trends in Calgary for 2025

Calgary’s housing market is expected to stay strong in 2025, with sales forecasted 20% above long-term trends. While we enter 2025 in a continued seller’s market, we are trending into more balanced conditions with increasing inventory, more new build options, and lower interest rates. Slowing migration will also create less competition for buyers, and trends are already showing that the time it takes to sell a property is slowly increasing as well.

Overall, the market sentiment in Alberta is one of positivity. With it being an election year, there is always some sense of uncertainty from political impact; however, Alberta is well-positioned for investment, job creation, and security. Prices across all residential sectors are anticipated to increase by approximately 3% in 2025.

• Sales Forecast: Sales are expected to exceed 26,000 units, over 20% higher than long-term trends.
• Market Conditions: Transition toward balanced conditions with increasing inventory and more new build options.
• Interest Rates: Lower interest rates anticipated to ease lending and stimulate buying activity.
• Migration Trends: Slowing migration expected to reduce competition among buyers.
• Price Growth: Prices across all residential sectors are anticipated to increase by approximately 3% in 2025.
• Economic Outlook: Positive market sentiment supported by investment, job creation, and economic stability, despite political uncertainties due to the election year.

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Statistics based on total Calgary residential sales – Jan 1 – Dec 31 2024
Sources:
CREB MLS®
*2025 CREB Market Forecast
**CREB® | 2025 Forecast & Region Yearly Outlook Report