Calgary's Housing Market: A Tale of Shifting Sands
Calgary's property market is potentially experiencing a dramatic transformation. After years of fierce competition that left buyers scrambling, the tide is finally turning in what might be the most significant market shift since the pandemic began.
The Great Rebalancing
Think of Calgary's housing market like a playground seesaw that's been heavily weighted on one side for years. Suddenly, children are jumping off the seller's side and climbing onto the buyer's end. While sellers still technically hold the upper hand across all property types, their grip is loosening faster than a politician's campaign promises.
The numbers tell a compelling story: inventory levels have surged across the board, with townhouses leading the charge at a staggering 118% increase in available listings. Apartments aren't far behind at 53%, whilst detached homes have seen a substantial 58% boost in supply. It's as if Calgary's homeowners suddenly decided to cash in their chips at the same time.
Demand Takes a Breather
On the flip side, buyer enthusiasm has cooled considerably. Purchase demand has dropped across all property types. Apartments took the biggest hit with a 23% decline, followed by townhouses at 12%, and detached homes at a more modest 6%. This isn't necessarily a sign of economic doom; rather, it suggests buyers are becoming more selective after years of frenzied competition.
The Price Reality Check
Perhaps most telling are the price movements. The benchmark detached home now sits at $761,800, down 1% over the past three months, whilst the median has fallen 3% to $705,000. Apartments have seen even sharper corrections, with the benchmark price at $329,600 dropping 2% quarterly and the median tumbling 5% to $310,000.
These aren't catastrophic declines, but they represent a significant psychological shift. For the first time in years, buyers can negotiate without feeling like they're bidding at an auction where everyone else has deeper pockets.
What's Driving the Change?
Several factors are conspiring to rebalance this market. Economic uncertainty stemming from trade tensions and persistent concerns about interest rates has made both buyers and sellers more cautious. Additionally, new construction has ramped up significantly, particularly in Calgary's newer communities, adding fresh supply to a market that was previously starved of options.
The most dramatic shift is visible in the months of supply metric, essentially how long it would take to clear current inventory at the present sales pace.
Detached homes have moved from a tight 1.8 months to a more balanced 3 months of supply.
Townhouses have experienced an even more dramatic swing from 1.3 to 3.2 months, while apartments have nearly doubled from 2.1 to 4.1 months. Apartments are in a balanced market for the first time in 4 years.
The Bottom Line
By no means is Calgary experiencing a supply glut. It’s still a seller’s market. The apartment market is on the edge between a seller’s market and a balanced market.
For buyers, the shift represents an opportunity to shop with a little less pressure. The frantic bidding wars are becoming less common, and there's actually time to consider options rather than making split-second decisions. Sellers, whilst still holding advantages, must now price more realistically and may need to wait longer for the right buyer.
This market rebalancing isn't unique to Calgary, it's part of a broader Canadian trend as markets adjust to new economic realities. The question isn't whether this shift will continue, but how far the pendulum will swing before finding its new equilibrium.
For now, Calgary's housing market appears to be settling into a more sustainable rhythm—one where both buyers and sellers can participate without feeling like they're engaged in economic warfare.
