As we step into 2025, the Calgary real estate market is poised for significant shifts amid evolving economic and political landscapes. The first week of the new year has already brought major developments that could impact Calgary housing trends and broader market conditions:
- Prime Minister Justin Trudeau resigns, leading to Parliament being prorogued until March 24, 2025.
- Donald Trump’s return as U.S. President has reignited economic uncertainty, with a proposed 25% tariff on Canadian imports, which could directly impact industries tied to Alberta’s economy.
These changes will likely influence Calgary home prices, mortgage rates, and housing demand throughout 2025.
Calgary Real Estate Market: A Look at the Last Five Years
2015-2019: Market Slowdown Before the Pandemic
- A downturn in Calgary’s oil and gas industry led to job losses and declining home values.
- 2015 Calgary home price benchmark: $520,000
- 2019 Calgary home price benchmark: $477,200 (a slow but steady decline)
2020-2024: Post-Pandemic Housing Boom
- December 2020 Benchmark Price: $490,500
- Calgary’s real estate market saw rapid appreciation due to high demand and limited housing supply:
- 2021: 15% increase to $564,300
- 2022: 9.8% increase to $619,600
- 2023: 12.5% increase to $697,300
- 2024: 7.2% increase to $747,500
Why Calgary Real Estate Defied Rising Interest Rates
Despite mortgage rates jumping from 3.7% in mid-2022 to 7.2% in October 2023, Calgary property values remained strong due to:
- Low inventory levels: A persistent shortage of available homes kept competition high.
- Strong migration to Calgary: People from B.C. and Ontario relocated in search of affordable housing in Calgary, while international immigrants from Asia, India, and the Middle East contributed to increasing demand.
Calgary Real Estate Market Predictions for 2025
1. Market Balancing Expected
With current housing inventory at two months’ supply, projections indicate an increase to 2.5 months by spring 2025, moving toward a more balanced real estate market in Calgary.
2. Immigration Target Adjustments
The Federal Government has revised immigration plans, reducing targets by 20%:
- 2025: 395,000 new immigrants (previously 500,000)
- 2026: 380,000 new immigrants
While this may slightly ease demand, Calgary homes for sale remain in high demand due to affordability and job opportunities.
3. More First-Time Buyers Entering the Market
With interest rates stabilizing—expected prime rate of 5.45%—and extended 30-year amortization periods, homeownership could become more accessible for Calgary homebuyers.
4. Economic Challenges May Affect Housing Prices
If the proposed 25% U.S. tariff is implemented, Alberta’s oil, gas, lumber, and steel industries could be impacted, leading to potential job losses. Some homeowners may opt to sell, leading to an increase in inventory and moderating Calgary home prices.
Calgary Housing Market Outlook for 2025
Early 2025 may bring economic uncertainty, potentially slowing sales. However, by mid-year, Calgary’s real estate market is expected to stabilize, with a 3-5% price adjustment anticipated by year-end.
Despite short-term fluctuations, Calgary real estate investment remains promising due to its affordability, strong job market, and growing population. Whether you're a homebuyer, investor, or seller, understanding Calgary property market trends will be essential in 2025.
Looking for expert guidance on Calgary homes for sale or investment properties in Calgary? Let’s connect today.
If you are interested in Calgary Real Estate Contact Excelsior Properties and Services agent today with Calgary home at 403-408-6364.