Mortgage Basics #Home Buying

Calgary Housing Market Outlook 2025

Calgary Housing Market Outlook 2025

Table of contents


    Calgary Market Report Summary

    • The average selling price of a home in Calgary increased by 4.5% year-over-year to $572,400 in December 2024.
    • The average selling price of a single-family home in Calgary increased by 7.3% year-over-year to $678,900 in December 2024.
    • The average selling price of a townhouse/multiplex in Calgary increased by 5.7% year-over-year to $456,900 in December 2024.
    • The average selling price of a condo in Calgary increased by 6.2% year-over-year to $338,100 in December 2024.
    • The average rent in Calgary decreased by 7.0% year-over-year to $1,921 for December 2024.
    • February 7, 2025: Today’s lowest mortgage rate in Calgary is for a 5-year fixed.

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    Composite Home Prices

    The average selling price of a home in Calgary was $572,400 for the month of December 2024, that’s decreased by 0.6% compared to the previous month. On a year-over-year basis, Calgary home prices have increased 4.5% over the last 12 months.

    Single-family Home Prices

    The average selling price of a single-family home in Calgary was $678,900 for the month of December 2024, that’s decreased by 0.2% compared to the previous month. On a year-over-year basis, single-family home prices in Calgary have increased by 7.3% over the last 12 months.

    Townhouse and Multiplex Prices

    The average selling price of a townhouse in Calgary was $456,900 for the month of December 2024, that’s decreased by 1.3% compared to the previous month. On a year-over-year basis, the price of a townhouse in Calgary has increased by 5.7% over the last 12 months.

    Condo Prices

    The average selling price of a condo in Calgary was $338,100 for the month of December 2024, that’s decreased by 1.2% compared to the previous month. On a year-over-year basis, the price of a condo in Calgary has increased 6.2% over the last 12 months.

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    Calgary Housing Market Summary

    Data from the Calgary Real Estate Board (CREB) indicates that the average price of resale residential homes sold across Calgary in December 2024 was $572,400, and it increased of 4.5% compared to a year ago.

    CREB also reported a sales-to-new-listings ratio (SNLR) of 107%, indicating a sellers market in Calgary for December 2024.

    Calgary Sees Strong Sales and Price Growth Amid Supply Challenges

    According to the Calgary Real Estate Board (CREB), Calgary’s real estate market wrapped up last year with impressive performance despite a slight decline in December sales. Robust population growth, sustained demand, and a competitive supply landscape contributed to another strong year for both sales and price growth.

    Detached homes experienced notable sales gains in properties over $600,000, with annual benchmark prices increasing nearly 11%. The most significant growth occurred in the city’s more affordable North East and East districts. In the semi-detached sector, limited availability of lower-priced detached homes pushed buyers toward this category, resulting in a 5% rise in sales and a nearly 11% increase in benchmark prices to $669,042. Row homes achieved 4,647 sales, marking the second-highest total on record. 

    Benchmark prices for row and townhomes grew by 14%, with gains exceeding 20% in the North East and East districts. Although apartment condo sales declined 4% year-over-year, the sector still recorded 7,568 transactions, ranking second highest. Annual prices for apartments rose 15%, with the North East, East, and South districts showing the most substantial growth.

    Key December Highlights

    • Sales: 1,322 homes sold, down 2.9% from December 2023 but nearly 20% above long-term trends.
    • Benchmark Price: $583,300, up 3.2% year-over-year but 0.8% lower than in November.
    • New Listings: 1,239 properties added, a slight 0.7% decrease from December 2023.
    • Inventory: 2,989 units available, showing improvement over earlier lows but still below historical norms.

    Annual Highlights

    • Sales Activity: Total sales were just below 2023, with higher-priced homes driving activity. Supply challenges limited lower-priced transactions.
    • Price Growth: Residential benchmark prices rose 7% annually, with the most substantial gains in the spring when supply was most constrained.
    • Inventory and Listings: Inventory levels improved in the year’s second half, aided by increased rental options and new home activity, but supply remained tight in lower-priced segments.

    Calgary’s housing market remains strong, buoyed by population growth and sustained demand. Supply improvements in higher price ranges and easing market pressures on home prices are expected to continue. However, affordability and supply choice will remain pivotal as economic conditions evolve. With a CREB forecast due later in January, further clarity on market expectations and risks will guide buyers and sellers in navigating Calgary’s dynamic real estate landscape.

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    Month-over-Month Market Expectations for Calgary

    Transactions –  Number of Sales

    The number of sales in Calgary was 1,321 during December 2024, that’s decreased by 26.4% compared to the previous month. On a year-over-year basis, sales in Calgary have decreased by 3.3% over the last 12 months.

    New Listings

    The number of new listings in Calgary was 1,240 during December 2024, that’s decreased by 46.8% compared to the previous month. On a year-over-year basis, new listings in Calgary have decreased by 0.6% over the last 12 months.

    Real Estate Market

    The sales to new listings ratio (SNLR) in Calgary was 107% during December 2024, indicating a sellers market. On a monthly basis, that’s increased by 38.3% compared to the previous month. Calgary’s yearly sales to new listings ratio has decreased by 2.7% over the last 12 months.

    The sales to new listings ratio (SNLR) measures the number of home sales compared to new listings. An SNLR under 40% suggests a buyer’s market in which buyers have the upper hand and more negotiating power. An SNLR between 40% and 60% is a balanced market, while an SNLR of over 60% is considered a seller’s market. 

    Annual Changes to Composite Home Prices in Calgary

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    Calgary Market Rents Summary

    The average rent in Calgary was $1,921 for the month of December 2024, which decreased by 7.0% on a year-over-year basis.

    The average rent for a bachelor apartment in Calgary was $1,402 for the month of December 2024, which decreased by 15.0% on a year-over-year basis.

    The average rent for a 1-bedroom apartment in Calgary was $1,697 for the month of December 2024, which decreased by 6.0% on a year-over-year basis.

    The average rent for a 2-bedroom apartment in Calgary was $2,067 for the month of December 2024, which decreased by 7.0% on a year-over-year basis.

    The average rent for a 3-bedroom apartment in Calgary was $1,697 for the month of December 2024, which decreased by 7.0% on a year-over-year basis.

    How Does Renting Compare with Homeownership in Calgary?

    Each $100,000 in mortgage balance costs an average of $533.64 per month on nesto’s lowest fixed 5-year rate at and $550.17 per month on nesto’s lowest adjustable 5-year rate at . For each $100,000 in mortgage balance, a 0.25% change in Canada’s policy rate impacts the monthly payment by $14.13.

    Rates used for calculation are those offered on insured purchases with less than a 20% downpayment on a 25-year amortization. Canada’s policy rate is , and nesto’s prime rate is set to .

    Rental Price Changes by City

    Rental Price Changes by Province

    Rental Price Growth by Housing Type

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    Frequently Asked Questions on Calgary Housing Market Outlook for 2025

    Will Calgary home prices rise in 2025?

    Calgary’s housing market is expected to see steady price increases in 2025 due to strong population growth and relatively affordable home prices.

    Is Calgary a good place to buy in 2025?

    Calgary remains a top option for buyers seeking affordable housing and substantial investment opportunities, especially for single-family homes.

    Will mortgage rates improve affordability in Calgary?

    Easing mortgage rates will enhance affordability, encouraging more buyers to act in 2025.

    Is Calgary’s housing market stable?

    Calgary’s market is stable, with increasing demand and steady price growth expected through 2025

    How affordable are homes in Calgary compared to other cities?

    Calgary remains significantly more affordable than cities like Toronto or Vancouver, making it attractive for buyers.

    Why Choose nesto

    At nesto, our commission-free mortgage experts, certified in multiple provinces, provide exceptional advice and service that exceeds industry standards. Our mortgage experts are non-commissioned salaried employees who provide impartial guidance on mortgage options tailored to your needs and are evaluated based on client satisfaction and advice quality. nesto aims to transform the mortgage industry by providing honest advice and competitive rates using a 100% fully digital, transparent, seamless process.

    nesto is on a mission to offer a positive, empowering and transparent property financing experience – simplified from start to finish.

    Contact our licensed and knowledgeable mortgage experts to find your best mortgage rate in Canada.

    EXPLANATIONS

    Interest Rates

    Property Values

    Home Price Index

    Property Types

    Property Ownership Classes

    Strata Insurance

    Rental Values

    Qualifying Criteria

    Professional Titles

    Mortgage Experts

    Interest Rates

    Qualified using nesto’s fixed 5-year insured and uninsured rates as advertised on our website. For today, Friday, February 7, 2025, our example calculations are qualified on our lowest rates, which may or may not apply to your unique financing situation or long-term goals. Insured fixed-rate mortgages will be qualified at , which is exactly 2% in addition to our fixed insured rate currently at . Uninsured fixed-rate mortgages will be qualified at , which is exactly 2% in addition to our fixed uninsured rate currently at . Insured variable rate mortgages will be qualified at , which is exactly 2% in addition to our variable insured rate currently at . Uninsured variable rate mortgages will be qualified at , which is exactly 2% in addition to our variable uninsured rate currently at .

    We appreciate your patience and understanding and encourage you to email us at website@nesto.ca with information that needs correction alongside your sources.

    Property Values

    Home values collected from CREA or QPAREB are those presented as the composite benchmark or average prices for each city/province/region unless specified. They may be interchangeably called average home prices, though an average price may not be available for many regions outside Quebec.

    MLS® Home Price Index (HPI)

    The MLS® Home Price Index (HPI) is a real estate price index compiled by the Canadian Real Estate Association (CREA) that tracks the price of homes in your neighbourhood. It’s a quick way for Canadians to compare home prices in different parts of Canada and between different periods without having to factor in the unique characteristics of a particular property.

    While market prices can vary from one month to the next based on seasonal factors, the Home Price Index (HPI) provides a more consistent view and tracks price trends over an extended period. The Home Price Index (HPI) is updated annually in May to reflect changes in real estate markets.

    MLS® HPI is the most comprehensive and precise way to track a neighbourhood’s home price level and trends. MLS HPI uses over 15 years of data from the MLS® System and advanced statistical models to create a “typical” home based on the characteristics of homes purchased and sold. This benchmark home is tracked across all Canadian neighbourhoods and various types of homes.

    Property Types

    Detached homes, also known as single-family homes, are residential properties that stand alone and are not connected to other buildings. They are legal single residential units on their own parcel of land and have a separate title.

    Semi-detached homes are characterized by their unique architectural design. Two houses are built side by side and share a common wall. Although sharing a building, semi-detached homes have their own parcel of land and separate legal titles.

    Townhouses are residential dwellings typically characterized by narrow, tall structures, often sharing walls with neighbouring units. Although they may share yards or common elements with their neighbours, townhouses will have separate legal titles from any adjoining building. Townhouses can be purchased as freehold or leasehold within a condo or strata and may come with their own land parcel. Townhouses can be part of a low-rise or high-rise building.

    Condo apartments, also known as condominiums, are residential properties that combine elements of apartments and individual homes. It is a unit within a larger building or complex owned by an individual who also shares ownership of common areas and amenities with other residents. Condo apartment owners have legal ownership of their units and can modify them within the guidelines set by the condominium association. Unlike a townhouse, condos do not offer exclusive use of outdoor space unless they come with a balcony or terrace. Condos can be part of a low-rise or high-rise building.

    Plexes or multiplexes are unique residential buildings constructed into 2 to 6 units within a single structure. Traditionally, they have been designed as low-rise residential buildings where any unit is accessible via an external entrance with higher floors connected by staircases. Each unit will have a separate registration and title but may share common elements and co-ownership fees with the other multiplex owners. Plexes are common in Québec and older parts of Toronto.  

    Property Ownership Classes

    freehold is a type of property ownership where an individual or entity has complete and indefinite ownership rights over a property and its parcel of land. Common freehold property types include detached houses, semi-detached houses, farms, and townhouses, which are not part of condominium corporations.

    condominium or condo is a distinct type of property class that combines apartment living and individual homeownership elements. In a condominium, individual units are owned by the residents, while the common areas and amenities are shared among all the unit owners. This type of ownership gives you rights to your specific unit and some rights and responsibilities to the common areas, such as the hallways, elevators, garage, pool and rooftop patios.

    leasehold is a legal arrangement where a person or entity holds the right to use and occupy a property for a specific period, typically through a lease agreement. In some cases, the leaseholder may own the building or unit and rent the land from the landowner (landlord).

    Strata insurance

    Strata insurance is insurance that a strata or condominium uses to cover damages to common areas, assets and liabilities to the strata. It can also include fixtures built or installed as part of the original construction of each unit, even though these may not be common structures. Strata insurance can cover the following:

    • Buildings and structures on the strata’s property, including common areas such as the garage, roof, lobby, pool, etc.,
    • Liabilities for any property damage or bodily harm due to an injury suffered on a strata property,
    • Which also includes fixtures in the standard unit or part of the original make of each unit.

    Strata insurance generally does not cover personal belongings and appliances in a condo unit. Damage caused by individual unit owners (e.g., water damage due to a unit owner’s negligence) is typically covered under personal condo insurance.

    Rental Values

    Our monthly or year-over-year rental averages are sourced from Urbanation’s monthly Rentals.ca National Rental Report.

    Mortgage Qualifying Criteria

    Insured qualifying criteria are limited to a 39% gross debt service (GDS) ratio and up to 25 years of amortization. For insured mortgage transaction calculations, we have used a 20% downpayment, unless otherwise indicated, in our examples and excluded any mortgage default insurance (CMHC) premium. Uninsured qualifying criteria are limited to a 35% gross debt service (GDS) ratio and up to 30 years of amortization. Our examples use a 20% downpayment for uninsured mortgage transaction calculations. Unless otherwise indicated, a $100 monthly heating cost is attributed to the total monthly stress-tested payment. Municipal tax rates are the most recently shown on the applicable municipality’s website (1% used as default when unavailable or for a region with an unspecified mill rate). Mortgage default insurance is not permitted on purchases that have valuations of $1 million or more, amortizations exceeding 25 years, or on refinance transactions.

    Regulatory Titles

    In Ontario (FSRA), mortgage brokers and agents serve as the middle person between borrowers and lenders, helping clients find the most suitable mortgage options for their financing situation. A Mortgage Agent works under the supervision of a Mortgage Broker and assists in the mortgage application process. A Mortgage Broker may also be responsible for compliance requirements for their brokerage or a team.

    The provinces of Quebec (AMF) and Newfoundland (Digital & Government Service NL) both exclusively utilize the designation of Mortgage Broker as a licensing designation.

    British Columbia (BCFSA) has two distinct roles within the mortgage industry: the Submortgage Broker and the Mortgage Broker. These positions have specific responsibilities and functions that contribute to the overall process of securing mortgages for clients. The Submortgage Broker works under the supervision of a licensed Mortgage Broker and assists in various tasks, such as gathering client information, completing paperwork, and liaising with lenders. The Mortgage Broker oversees the entire mortgage application process, including assessing client needs, finding suitable mortgage options, negotiating terms, and ensuring compliance with regulations.

    In Alberta (RECA) and New Brunswick (FCNB), the distinction between a Mortgage Associate and a Mortgage Broker lies in their roles and responsibilities within the mortgage industry. A Mortgage Associate typically works under the supervision of a Mortgage Broker and assists in the mortgage application process gathering necessary documentation, and providing support to clients. A Mortgage Broker is licensed to independently negotiate and arrange mortgage loans on behalf of clients, offering a more comprehensive range of mortgage options and expertise in the field.

    In Saskatchewan (FCAA) and Nova Scotia (Government of Nova Scotia, Business Licensing), there are distinct roles for both Associate Mortgage Brokers and Mortgage Brokers. The critical difference lies in their level of experience and licensing requirements. Associate Mortgage Brokers work under the supervision of a licensed Mortgage Broker and are in the early stages of their career. They may assist with gathering client information and preparing mortgage applications. Mortgage Brokers have obtained the necessary qualifications and licences to operate independently and provide mortgage services directly to clients. They have the authority to negotiate mortgage terms, advise clients, and facilitate the mortgage process from start to finish.

    In Manitoba (MSC), a Salesperson is primarily responsible for promoting and selling products or services, while an Authorised Official holds the authority to make legally binding decisions on behalf of the organization. These roles have different levels of authority and expertise, with the Salesperson focusing on sales and the Authorised Official having broader decision-making powers and acting as the liaison between the brokerage and the regulator. 

    For a complete list of licensing terms in Canada, please see the Mortgage Broker Regulators’ Council of Canada (MBRCC) published list.

    nesto Mortgage Experts

    Titles such as mortgage broker, mortgage agent, submortgage broker, mortgage salesperson, or principal broker are provincially regulated licensing terms with educational requirements specific to each province. Although they may all commonly be referred to as mortgage brokers, in Ontario, where mortgage agents are used as a designation, mortgage brokers or principal brokers have additional responsibility for compliance and training mortgage agents.

    Licensed mortgage professionals often use the industry norm of “mortgage broker,” “broker,” or “advisor” to refer to themselves. However, disclosure requirements for licensed mortgage professionals’ titles vary across each province in Canada. These disclosures require mortgage brokers to adhere to specific rules when using titles to represent their qualifications and expertise. The provinces have regulations and guidelines that govern the use of titles by mortgage brokers. These regulations aim to ensure transparency and protect consumers in the mortgage industry.


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