Calgary Market Cool-Down: Inventory Rises, Affordability Improves as 2025 Nears End
Calgary's real estate market experiences a typical December slowdown, characterized by rising inventory, adjusting prices, and improved affordability, particularly for higher-density properties. This signals a transition from a seller's to a more balanced market.
THE DAILY PULSE
On December 17th, Calgary recorded 36 total sales, slightly outpacing the 31 new listings that entered the market. This led to a modest daily absorption of new inventory. Active listings stood at a substantial 4,928 units, with today's average sale price at $521,011.
Implication: While this specific day saw sales narrowly exceed new listings, suggesting quick absorption for newly available properties, buyers should interpret this within the broader context of a market trending towards increased inventory and choice.
MONTHLY TRENDS
So far in December, Calgary has seen 747 total sales against 905 new listings, indicating that new inventory is consistently outpacing sales. The current month's average price stands at $613,202, highlighting price variability when compared to the daily average. November witnessed a year-over-year decline in home sales and a significant 28% increase in inventory, contributing to a softening market.
Implication: Sellers, particularly of higher-density units, should anticipate longer market times and be prepared to price competitively. A strong marketing strategy is crucial to stand out in an environment where buyers have more options and are taking a "wait-and-see" approach.
YEAR-OVER-YEAR CONTEXT
For 2025 year-to-date, Calgary recorded 22,409 total sales with an average price of $628,980. However, recent daily and monthly averages indicate a market recalibration. November inventory levels reached 5,581 units, 28% higher than last year and the highest since 2020. Earlier interest rate cuts in 2025 improved affordability, with the 5-year conventional mortgage rate at 6.2% by Q2. This has driven a transition from a strong seller's market to more balanced conditions, particularly benefiting buyers in the apartment and row home sectors, which now show over 5.5 and 3.5 months of supply respectively. Detached homes, however, continue to exhibit seller's market characteristics.
Implication: Buyers are presented with increased choice and improved affordability across many segments, making this a strategic time to explore opportunities, especially for higher-density properties. Detached home buyers, however, should still expect a more competitive landscape.
