Calgary’s Residential Market Recalibrates in Mid-2025

Calgary’s real estate market is undergoing a notable recalibration as of July 2025, transitioning from the sustained seller’s market that dominated the past two years to a more balanced environment. According to an Edge Realty Analytics report in July 2025, the city has now recorded six consecutive months of benchmark price declines, with year-over-year prices turning negative for the first time since 2020. However, the report indicated confidence in Alberta’s long-term fundamentals, suggesting the current phase is a necessary correction rather than a structural issue.

The cyclical nature of this shift is largely attributed to a surge in new supply. Increased completions and a large pipeline of upcoming inventory, particularly in the multi-family and rental segments, have impacted the short-term supply-demand dynamic. Nevertheless, the broader outlook remains optimistic, with strong demographic and employment drivers underpinning demand over the medium to long term.

Inventory Expands as Listings Return

One of the most visible signs of the market shift is the sharp rise in inventory. According to the Calgary Real Estate Board’s (CREB) Housing Review Q1 2025, active inventory in Calgary increased by more than 80% year-over-year for the first quarter of this year. This growth shows a reversal from the supply-constrained environment that characterized much of 2023 and 2024.

This was due in part to a rise in new listings, with Q1 2025 seeing a 21% year-over-year (y/y) increase, reaching 9,745 homes. Apartment listings were especially prominent, hitting an all-time high. Despite some month-over-month softening in June, total listings remained above 2024 levels. The sales-to-new listings ratio sat at 56% in June, according to Metro Deep Dive – July 2025, indicating a more balanced market. 

Pricing and Sales Continue to Moderate

Sales activity has also slowed in line with the shift toward equilibrium. According to the Edge Realty Report, home sales in June were down approximately 2% from the previous month and significantly below year-ago levels, particularly in the condominium segment.

CREB’s Q1 2025 Housing Review reported a benchmark price across all property types of $587,700, reflecting a 1% y/y increase. On a quarterly basis, it had declined for three consecutive quarters since Q2 2024. Detached home prices rose 5% year-over-year, semi-detached increased 7%, row houses were up 3%, and apartment prices grew 4%. 

More recently, benchmark prices across most housing types have either flattened or declined. The Edge Realty report notes that the overall benchmark home price in Calgary dropped by nearly 4% y/y as of June.