February 2025 Real Estate Market Report: Calgary and Area

As of February 1, 2025, the Calgary real estate market, along with its neighboring communities of Airdrie, Cochrane, and Okotoks, continues to exhibit dynamic trends in sales activity, pricing, and inventory levels. Below is a comprehensive analysis based on the latest statistics from the Calgary Real Estate Board (CREB) and recent market reports, providing valuable insights for both buyers and sellers navigating the current landscape.

In light of the recent U.S. announcement imposing 25% tariffs on steel and aluminum imports, it's natural to feel concerned about potential impacts on our housing market. While these tariffs may lead to increased costs for construction materials, it's important to remember that Calgary's real estate sector has consistently demonstrated resilience in the face of economic challenges. By staying informed and adaptable, we can continue to navigate these developments successfully. We will continue to update you as more information becomes available through the coming weeks and months.

Real Estate Market Overview

Sales Activity

In January 2025, Calgary recorded 1,451 home sales, marking a 12% decrease compared to January 2024. Despite this decline, sales remained approximately 30% higher than typical January levels, indicating sustained demand in the market.

The reduction in sales aligns with seasonal expectations and reflects a market adjusting after consecutive years of heightened activity. Detached homes accounted for a significant portion of sales, while apartment-style units and row houses also maintained steady interest, driven by affordability and lifestyle preferences.

Inventory Levels

January 2025 saw 2,896 new listings, a 35.5% increase from January 2024. This influx contributed to a total inventory of 3,639 units, representing a 68.6% rise from the previous year. While this is a substantial increase, inventory levels remain below the 4,000-plus units typically seen in January.

The months of supply—a measure of how long it would take to sell all current listings at the current sales pace—reached 2.5 months in January, up from one month the previous year. This indicates a shift toward more balanced conditions, though the market still favors sellers, particularly in specific property segments.

Benchmark Price

The overall benchmark price for Calgary real estate in January 2025 was $583,000, remaining relatively stable compared to the end of 2024 and reflecting a 2.8% increase from January 2024.

• Detached Homes: The benchmark price stood at $750,800, a 7% increase year-over-year.
• Semi-Detached Homes: The benchmark price was $673,600, an 8% rise from the previous year.
• Row Houses: The benchmark price reached $444,900, nearly a 5% increase year-over-year.

These price trends highlight sustained appreciation across various property types, with detached and semi-detached homes experiencing the most significant gains.

Regional Market Insights: Airdrie, Cochrane, and Okotoks

Airdrie

In January 2025, Airdrie's real estate market remained robust, with sales aligning with levels reported in both the previous month and January 2024, maintaining a position well above long-term trends. A notable increase in new listings contributed to improved inventory levels, resulting in a month's supply exceeding two months for the fifth consecutive month. While this 2.6 months of supply is below Airdrie's historical norms, it marks a significant improvement over the sub-two-month levels observed since 2021. The easing of supply constraints has alleviated some upward pressure on home prices. The unadjusted benchmark price in January was $537,300, reflecting a slight decrease from the previous month but representing nearly a 4% increase from January 2024.

Cochrane

Cochrane experienced similar trends, with an uptick in new listings and inventory levels. January saw 104 new listings compared to 71 sales, elevating inventory to 156 units. While these figures surpass those of the past three years, they remain below long-term averages for January. The months of supply have remained above two months for five consecutive months, easing the upward pressure on home prices. The unadjusted benchmark price in January was $565,900, a decrease from the previous month but nearly a 5% increase from January 2024.

Okotoks

Contrasting with Airdrie and Cochrane, Okotoks faced relatively low new listing levels compared to the previous year. Despite a decline in sales supporting some inventory growth, the 68 units available in January are still half the pre-pandemic January levels. This limited supply has been a significant factor in the area's price increases since 2021. As of January, the unadjusted benchmark price was $614,900, showing a slight gain over the previous month and nearly a 5% increase from January 2024.

Market Drivers and Trends

1. Population Growth
   The Calgary region continues to attract new residents, bolstering housing demand. The area's relative affordability compared to other major Canadian markets, along with strong employment opportunities, contributes to this trend.
2. Easing Lending Rates
   Recent reductions in lending rates have made borrowing more accessible, encouraging both first-time buyers and investors to enter the market.
3. Supply Improvements
   The increase in new listings has provided more options for buyers, particularly in higher-priced segments. However, supply remains constrained in lower-priced categories, maintaining competitive conditions.

Advice for Buyers and Sellers

For Buyers

• Act Decisively: With inventory levels improving but still below historical norms, desirable properties may receive multiple offers. Being pre-approved for a mortgage and ready to make swift decisions can provide a competitive advantage.
• Explore Various Property Types: Consider a range of property types and neighborhoods to identify opportunities that align with your budget and lifestyle preferences.
• Stay Informed: Keep abreast of market trends and work closely with a knowledgeable

For Sellers

• Leverage Strong Demand: Although inventory levels have increased, demand remains high in many areas, particularly for well-priced and well-presented homes. Sellers should capitalize on this by listing their homes strategically.
• Competitive Pricing is Key: While home values have increased over the past year, buyers are becoming more price-conscious due to economic uncertainty and interest rate fluctuations. Setting a competitive price based on recent comparable sales can help attract serious buyers.
• Enhance Curb Appeal and Presentation: First impressions matter. Ensure your home is in excellent condition by making minor repairs, decluttering, and staging where necessary. High-quality listing photos and virtual tours can significantly increase buyer interest.
• Be Flexible with Showings and Offers: Buyers today have more choices, so being open to different closing timelines and minor negotiations can make the difference between a sale and a property that lingers on the market.
• Work with a Knowledgeable REALTOR®: An experienced REALTOR® can provide expert market insights, assist with pricing strategies, and ensure maximum exposure for your property through targeted marketing efforts.

If you have any questions or need additional market insights, please don’t hesitate to reach out. Our entire team is accessible and ready to help you navigate this market.