The Calgary real estate market is experiencing notable changes as we move into February 2025. With a significant increase in inventory and shifting sales dynamics, buyers and sellers alike need to stay informed about the latest trends. This blog post will delve into the current state of the market, providing insights and advice for both parties.
Market Overview
According to the Calgary Real Estate Board (CREB), the overall market in February 2025 shows that sales remain above long-term trends, despite experiencing declines for the second consecutive month. The chief economist at CREB highlighted that inventory levels have seen substantial year-over-year growth, rising by 76% to 4,145 units this February. This increase offers buyers more options, especially in the under-$500,000 price range, which has seen the largest growth due to the popularity of affordable apartment and row townhouse sectors.
Sales and Inventory Changes
In February, Calgary recorded 1,721 sales, which, while above historical averages for the month, represents a 19% decline compared to the previous year. The number of new listings in February reached 2,830, aligning closely with historical averages. The sales-to-new-listing ratio for the month was 61%, which is higher than historical averages but below levels seen in the last three years. This indicates a market that is gradually shifting away from the intense sellers' market experienced over the past few years.
Home Prices: Up or Down?
The total residential unadjusted benchmark price for February was $587,600, reflecting a stable price compared to late 2024 and a 1% increase year-over-year. Price changes, however, varied across the city. The City Centre and North districts saw declines, while the East district experienced the largest price growth at over 3%. Here are some specific price trends:
Detached Homes: Benchmark price rose to $760,500, up 5% year-over-year.
Semi-Detached Homes: Increased to $683,500, showing a nearly 7% rise.
Row Townhouses: Price rose 2.8% to just under $447,000.
Apartments: Up 4% to $334,200.
Overall, while prices are holding steady, the market is beginning to show signs of stabilization after a period of rapid growth.
Supply and Demand Trends
The months of supply in February stood at 2.4, which is similar to last month but more than double compared to the same period last year. Apartment-style units remain the most well-supplied, with a months of supply of 3.1. This increase in supply reflects a shift towards more balanced conditions in the market, although it still favors sellers in certain areas.
Price Breakdown by Home Type
Different property types are experiencing varying trends in pricing and sales. The following breakdown provides a closer look at how each type is performing:
Detached Homes
The detached home market saw sales slow to 765 units, nearly 20% lower than last year. New listings increased by nearly 6%, contributing to a higher inventory level of 1,698 units, a 61% increase compared to 2024. The months of supply across districts improved, leading to a more balanced market.
Semi-Detached Homes
In February, there were 240 new listings for semi-detached homes, a 7% increase. Sales fell by 14%, bringing the total to 165 units. The gap between sales and new listings drove inventories up by 46%, although they remain below long-term averages.
Row Townhouses
The row townhouse segment saw a decrease in sales of over 9%, while new listings increased by nearly 4%. Inventory levels reached 655 units, more than double the previous year. Despite the decline in sales, both sales and new listings remain above long-term averages for February.
Apartments
Sales in the apartment sector reached 473 units, which is 26% lower than last year but still above long-term averages. New listings remained relatively stable year-over-year, but inventory increased significantly, resulting in a months of supply of 3.1.
Market Insights by District
Understanding the market dynamics in specific districts can help buyers and sellers make informed decisions. Here’s a brief overview:
City Centre
The City Centre has seen a slight decline in prices, reflecting a cooling market. However, it remains popular among buyers due to its urban amenities and lifestyle offerings.
North District
Similar to the City Centre, the North district has also experienced price declines. This district is becoming more balanced, with inventory levels increasing.
East District
The East district has shown the most robust growth, with prices increasing significantly, making it an attractive option for buyers looking for value.
South and North West Districts
These districts continue to experience tight supply conditions, with inventory levels remaining low. This trend is likely to keep prices stable in these areas.
Advice for Buyers
For buyers navigating the current market, here are some key takeaways:
Be Proactive: With more homes on the market, it’s a great time to shop around. Don’t hesitate to put in offers, as homes are sitting longer.
Know Your Budget: With increased inventory, buyers may find opportunities to negotiate below asking prices.
Stay Informed: Keep an eye on market trends and be ready to act when you find the right home.
Advice for Sellers
Sellers should be strategic in their approach to pricing and presentation:
Set Realistic Prices: With more inventory, it’s crucial to price your home correctly to attract buyers.
Enhance Curb Appeal: Make sure your home is clean and well-maintained to attract potential buyers.
Monitor Market Activity: If your home has been on the market for an extended period without interest, consider adjusting your price.
Final Thoughts
The Calgary housing market in February 2025 is showing signs of a transition towards a more balanced environment. While inventory levels are rising and sales are down, buyers have more options, and prices are stabilizing. Whether you’re looking to buy or sell, understanding these dynamics will be key to navigating the current market successfully. What do you think will happen in March? Share your thoughts in the comments below!