Calgary Market Update: May 2025
From Sizzle to Simmer: Calgary’s Housing Market Finds Its Balance
After years of rapid growth and red-hot seller conditions, Calgary’s real estate market is showing signs of cooling—but not collapsing. The historically strong spring market in Calgary has fallen flat this year and in May 2025, sales dipped 17% compared to the same time last year, largely due to a steep pullback in the condo market. While that headline may raise eyebrows, the bigger picture tells a more nuanced story: sales are still 11% above long-term May averages and have improved over last month.
Inventory is beginning to climb, slowly easing the intense competition seen in previous years. With 2.6 months of supply, the market is edging into more balanced territory—something that’s proving beneficial for long-term stability. Price trends are now diverging by property type, with detached and semi-detached homes holding firm, while condo and town units are seeing modest price declines due to stronger competition from new builds recently completed and rental buildings offerings.
This shift marks a notable departure from other major Canadian cities still grappling with weak fundamentals. As Calgary moves toward balance, smart investors will want to watch how inventory dynamics and price trends evolve in the months ahead. I believe that this is all temporary caused by economic uncertainty—tariffs on! Tariffs off! Tariffs are illegal! No tariffs are not! What is happening!?
Condo Benchmark Price: $335,300 ⬇️ 1.5% YoY
Recent declines have not offset the double-digit gains reported over the past two years.
Townhome Benchmark Price: $453,600 ⬇️1.9% YoY
Improved supply choice for new properties is impacting resale activity.
Detached Benchmark Price: $769,400⬆️ 1.0% YoY
The NE district is taking it on the chin right now.
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DETAIL BY PROPERTY TYPE
(Statistics from the Calgary Real Estate Board)
Condos
Calgary’s condo sector saw a sharp slowdown in May, with sales dropping to 579 units—well below last May’s record-breaking 907. Despite a slight dip in new listings year-over-year, supply still outpaced demand, pushing the sales-to-new listings ratio down to 47%. This imbalance is driving inventory up and raising months of supply to 3.6, marking a clear shift in market dynamics.
Adding to the pressure, a high volume of apartment rental units under construction is increasing rental supply, leading to rent adjustments that may be discouraging renters from transitioning into ownership. This shift, combined with cautious investor sentiment, is cooling demand in the condo market.
Prices are beginning to reflect these changes. The benchmark apartment price dropped to $335,300 in May—down from the previous month and over 1% lower than a year ago. The steepest price declines are concentrated in the North East and South East districts, where resale condos are facing strong competition from new developments. Still, despite the recent softening, prices remain well above where they were just two years ago, highlighting the long-term strength the sector has experienced.
Townhouses/Row Houses
Calgary’s townhome segment is showing early signs of cooling after a strong run. While sales in May 2025 have eased from last year’s near-record highs, they remain well above long-term averages—indicating that demand hasn’t disappeared, but is adjusting. The real story lies in inventory: for the second consecutive month, row home inventory surpassed 1,000 units, a level not seen since 2021.
This growing supply is beginning to impact prices, particularly in the North East, where months of supply have reached 3.5—putting downward pressure on prices. The North, North West, and South districts are also seeing year-over-year price declines, as new home options provide more choice for buyers and weigh on resale activity.
City-wide, the benchmark price for row homes dipped to $453,600 in May—down from last month, nearly 2% below May 2024, and falling below last year’s seasonal high. For investors, this could signal an emerging opportunity in select areas, especially as inventory levels continue to reshape the playing field.
Detached Houses
Calgary’s May 2025 market data reveals a notable uptick in new listings, climbing to 2,419 units—mainly in the $600,000+ segment. While sales activity has slowed across most price brackets, the shift is fostering more balanced market conditions and stabilizing prices. But not all areas are following the same script.
In particular, the North East district is experiencing the sharpest cooling. A surge in new listings combined with a significant drop in resale activity has pushed the sales-to-new listings ratio down to just 41%, with months of supply approaching four. This increased inventory is now putting downward pressure on prices in the area, contrasting with ongoing price strength in the City Centre, West, and North West districts.
Despite regional variations, the city-wide unadjusted benchmark price held steady at $769,400 in May—up 1% year-over-year and still above last year’s seasonal high. For investors, the key takeaway is clear: while Calgary’s market remains fundamentally resilient, district-level trends are becoming increasingly important to watch.
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