Calgary’s real estate market is expected to see continued price growth in 2025, with a forecasted increase of 4% in the aggregated home price, reaching $728,104 by the fourth quarter of the year, up from an estimated $700,100 in 2024. This forecast comes from Royal LePage’s 2025 Market Survey, offering insight into the city’s housing trends.
Market Stabilization After a Busy Year
According to Corinne Lyall, broker and owner of Royal LePage Benchmark, Calgary’s housing market began stabilizing after a busy 2024. While inventory levels have increased to levels not seen in nearly two years, supply still remains limited compared to demand. Lyall anticipates that 2025 will bring a balanced market, with certain housing styles and price points seeing more stability.
Price Increase Expectations by Property Type
Detached single-family homes are expected to see a slightly higher price increase, with a forecasted 4.5% rise to $836,000, up from $800,000 in the fourth quarter of 2024. On the other hand, condominiums are expected to see a more modest price growth of 2%, reaching $278,154 by the end of 2025, compared to the current $272,700.
Trends in Supply and Demand
Lyall notes that inventory is increasing in the higher-end single-family segment, but fewer listings are being added in the lower end of the detached housing market. This trend is expected to continue into 2025, with supply growing across most property types, except for lower-end detached homes, where price pressure may continue.
Calgary Compared to Other Major Markets
Among the major markets included in the Royal LePage survey, Calgary’s forecasted price increase of 4% places it among the lowest. The Greater Vancouver Area is expected to see a 4% increase, with prices reaching $1,271,712. The Greater Toronto Area’s prices are forecasted to rise by 5% to $1,225,770, while Edmonton is predicted to see a more significant increase of 9%, bringing the average price to $494,860.
Housing Growth in Attached and Townhome Markets
The growth in residential attached homes and townhomes is expected to be a key factor driving price increases in Calgary. These property types are attractive to first-time buyers due to their affordability and relative size. However, many younger buyers may continue to explore housing options in communities outside Calgary, where prices tend to be lower.
Increased Consumer Confidence and Borrowing Power
Over the past six months, consumer confidence has improved, aided by a decline in interest rates. Lyall believes that borrowing costs will likely continue to decrease through the first half of 2025, encouraging more buyers to enter the market. As borrowing power increases, some sellers may decide to list their homes, further boosting inventory in the entry-level market.
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National Real Estate Outlook
Across Canada, Royal LePage is forecasting a national housing price increase of 6% year-over-year, with the aggregated price rising to $856,692. However, the report notes that political changes, such as a potential federal election in Canada or the incoming U.S. administration, could have an impact on the overall housing market.
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