Housing Demand Stays High, but Market Balancing
With population growth and easing lending rates supporting demand, home sales are expected to exceed long-term trends, surpassing 26,000 transactions. However, factors such as slowing migration, increased new home supply, and economic uncertainty may temper resale activity. The overall market is expected to shift toward a more balanced state, slowing price increases to an average gain of 3%.
Key Trends by Property Type
- Detached Homes: Sales should see slight growth, driven by lower mortgage rates and ongoing interprovincial migration. However, an increase in high-end inventory may moderate price growth to around 3%.
- Semi-Detached Homes: Affordability concerns are pushing buyers towards semi-detached properties, with steady demand expected to continue in 2025. Prices are projected to rise by approximately 3%.
- Row Homes: More new listings and increased inventory in mid-to-upper price ranges will slow price growth, but demand for affordable options remains high.
- Apartments: Rising new condo supply and higher rental completions may shift more buyers towards new builds. Sales are forecasted to decline by 3%, with price growth slowing to below 2%.
Economic Factors at Play
The local economy remains strong, thanks to investments in energy, technology, and manufacturing. However, potential U.S. tariffs and shifting federal policies could introduce uncertainty. Alberta’s economic growth is expected to remain positive, supporting stable employment levels and migration, which will influence housing demand.
The Rental Market: A Shift Toward Stability
After years of rising rental prices and declining vacancies, a surge in new rental properties is set to improve availability. As a result, rental rate growth may slow, further easing pressure on the housing market.
Surrounding Areas See Continued Growth
Smaller communities around Calgary, such as Airdrie, Cochrane, and Okotoks, are experiencing continued population increases, driving strong price appreciation. Airdrie and Cochrane, in particular, have seen benchmark home prices climb by nearly 9% in the past year.
Final Thoughts: A More Balanced Market Ahead
While demand remains high, increased supply and shifting economic conditions are expected to ease the rapid price growth seen in recent years. With lending rates decreasing and inventory rising, Calgary’s housing market is on track to stabilize, offering more opportunities for buyers and investors in 2025.For a deeper dive into the full 2025 forecast, click
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