Calgary, Canada’s Hottest Housing Market is Cooling
Among Canada’s big-city property markets, Calgary has long been the outlier. While Vancouver and Toronto suffered under the weight of interest-rate hikes, Alberta’s oil-rich capital kept climbing. But signs are emerging that Calgary’s remarkable housing run may be nearing its limits.
Detached houses, the crown jewel of the city’s housing stock, remain in a seller’s market. Yet the trendline now tilts toward buyers. Inventory, long scarce, is improving: months of supply have jumped from 1.4 to 2.6 since last year, an 86% increase. Active listings are up 75%, while purchase demand has slipped by 7%.
Prices, too, are beginning to soften. The benchmark price for a detached home sits at $764,300, down 1% over the past three months. The median price has dropped 2% to $720,000. While these are hardly steep declines, they represent the first meaningful shift in balance since the city’s latest upswing began.
Several factors are driving the cooling. Higher mortgage rates, cautious consumer sentiment, lower oil prices, and a more robust supply of homes have given buyers a touch more leverage. Sellers, once emboldened by bidding wars, are finding they must negotiate.
Still, Calgary remains one of Canada’s strongest markets. Prices are well above pre-pandemic levels, and population growth continues to support long-term demand. But the days of easy price gains are fading. For now, Calgary’s housing market appears to be settling into a more sustainable rhythm. Still warm, but no longer red-hot.
