Calgary Real Estate Board Market Report - January 2025: Sales Decline Amid Increased Inventory

Calgary Real Estate Board — January 2025

In January 2025, Calgary's real estate market recorded 1,234 sales, reflecting a 15% year-over-year decline. The composite benchmark price stands at $724,000, while active listings have surged to 4,391 units, marking the highest January inventory since 2020.

Market Analysis

The Calgary real estate market is currently exhibiting conditions favorable to sellers, with a sales-to-new-listings ratio (SNLR) of 44.0%. This indicates that while sales have decreased, the influx of new listings has been significant, contributing to an increase in total inventory levels. The months of inventory currently sit at 3.6, suggesting a balanced market overall, though conditions vary by property type. The increase in active listings has led to a more competitive environment, particularly for high-density homes, where buyer hesitance has been noted due to increased supply.

Property Type Analysis

Sales trends indicate that all property types have experienced declines, with the most significant drops occurring in the higher-density segments, such as apartments and row-style homes. The detached market, however, remains relatively balanced with a sales-to-new-listings ratio of 53%, supported by a lower inventory level of 1,753 units. In contrast, the apartment sector faces higher inventory levels, leading to a months of supply reaching five months, which is above long-term trends and indicates a softer market for these types of properties.

Regional Highlights

Regionally, the West district shows resilience with year-over-year price declines of less than one percent, while the North East district has seen prices drop over six percent. This disparity highlights the varying demand dynamics across Calgary, with some areas maintaining stability while others face greater challenges due to oversupply.

For Buyers

Prospective buyers are encouraged to take advantage of the increased inventory levels, which provide a wider selection of homes and potentially more negotiating power. With the current market conditions favoring buyers, it may be beneficial to explore options across different property types and neighborhoods to find the best fit.

For Sellers

Sellers should be mindful of the increased competition in the market, particularly in the high-density segments. Pricing homes competitively and ensuring they are well-presented can help attract buyers in a market where inventory levels are high. Additionally, being prepared for negotiations is essential as buyers may be more discerning given the current supply dynamics.