1. Home Price Growth
Projected Increase: The average Calgary home price is expected to rise by approximately 4.5% this year, driven by growing buyer confidence and easing interest rates.
Current Averages: As of January 2025, the average home price stands at $605,026, reflecting a 6.3% year-over-year increase.
2. Population Growth and Housing Demand
Population Increase: Calgary's population is projected to grow by 2.9% in 2025, bolstering housing demand, especially in family-friendly and affordable neighborhoods.
Supply Dynamics: While new listings have increased, demand continues to outpace supply, particularly in mid-range properties.
3. Market Balance and Inventory
Balanced Conditions: The sales-to-new-listings ratio (SNLR) in Calgary was 50% in January 2025, indicating a balanced market.
Inventory Levels: Inventory increased by 69% year-over-year to 3,639 units, equating to 2.5 months of supply.
4. Economic Factors
Economic Growth: Calgary's economy is projected to grow by 3.2% in 2025, driven by job stability and investments in sectors like technology and renewable energy.
Interest Rates: Easing mortgage rates are enhancing affordability, encouraging more buyers to enter the market.
5. Rental Market Trends
Average Rents: The average rent in Calgary was $1,921 in December 2024, reflecting a 7.0% decrease year-over-year.
Affordability: Despite recent decreases, Calgary remains more affordable compared to cities like Toronto and Vancouver, making it attractive for both renters and buyers.
In summary, Calgary's real estate market in 2025 is characterised by steady price growth, balanced market conditions, and strong economic fundamentals. Buyers and sellers are encouraged to stay informed and work closely with real estate professionals to navigate this dynamic landscape effectively.