July 2025 - Welcome to another edition of our bi-annual market report. Here, you will find an update on current real estate market conditions, as well as current stats relating to the rental market, and other key economic indicators for our city. We will also be taking a closer look at first-time homebuyer programs and ongoing large-scale developments happening around the city. We hope you enjoy the read!
- Frances, Thomas, & Team
CREB 2025 Q2 ECONOMIC UPDATE
Courtesy of the Calgary Real Estate Board (CREB)
Since the Calgary and region forecast for 2025 was released, economic uncertainty has persisted. Trade and economic uncertainty have contributed to slower sales in many housing markets across the country, including Calgary. Here, earlier declines in energy prices, combined with uncertainty regarding energy policies and a pause in rate declines, likely also contributed to some of the stronger-than-expected pullback in activity in the early spring market. However, supportive population growth, along with previous gains, resiliency in our job market, and lower lending rates in the second half of the year, should help offset some of the impact on demand felt throughout the spring.
Sales in Calgary were forecasted to ease slightly in 2025. However, the heightened uncertainty throughout the spring months is expected to result in a higher-than-expected decline in annual sales. While sales are not expected to ease to the lower levels reported during the 2015-2020 period, sales are expected to slow to levels more consistent with long-term trends.
At the same time, record high starts occurring over the past few years are adding supply to the market. Most of this supply is of higher density and targeted at the rental market. Nonetheless, as these units are completed, the additional supply option for renters, potential owners, and existing homeowners is causing the supply to rise in the resale market. However, like sales, the inventory gains need perspective. While inventory has doubled over last year’s levels, it is rising from near-record lows, and inventory levels are returning to normal.
2025 FORECAST
Easing sales and rising inventory are expected to create more balanced housing market conditions, a notable shift from the extreme seller’s market of the past two years. This will ease pressure on home prices, which are projected to stay stable or grow modestly this year.
Conditions will differ by property type: the detached market still faces supply issues in some ranges, supporting slight gains, while increased supply of apartments and row units may push prices down in those segments.
KEY ECONOMIC INDICATORS
Expectations of Alberta’s and Canada’s economic performance this year remain wide-ranging. Policy interest rates are still expected to ease, as weaker economic activity is expected to offset the impact of inflationary pressures caused by the tariffs. Meanwhile, provincial migration levels are expected to slow from the rapid pace seen over the past two years, but will remain within a range that still supports housing activity. While risk and uncertainty remain high, outcomes and the impact on housing demand will be largely contingent on whether we continue to avoid significant job loss and the direction of energy/environmental government policy.
LENDING RATES & INFLATION
RENTAL MARKET AND NEW CONSTRUCTION
Following the record-high starts of last year, new home starts continue to rise. However, many of the starts in Calgary are higher-density products intended for the rental market. This will continue to support the trend of higher rental vacancies and declines in asking rents. Gains in higher-density construction are expected to weigh on resale condominiums and row-style products, as increased supply choice for renters tends to slow demand for ownership, both from renters and investors, especially as international migration numbers ease from record-high levels. Rising supply choice is primarily occurring in the newer communities of the city, impacting resale prices in areas close to newer homes.
Want to read more? Click HERE to review CREB's Spring 2025 Market Update!
2025 YTD CALGARY MARKET UPDATE
JULY 2025 - Calgary and its local real estate market are always evolving and 2025 has proved to be no exception. After a whirlwind few years where a strong demand and limited inventory of available homes kept the market firmly planted in favour of the seller, the real estate market has now returned to more balanced conditions.
Although sales throughout the first half of 2025 have remained relatively consistent compared to long term trends, a boost in new listings has led to rising inventories across nearly all market segments and price categories. Overall inventories are now approximately double what they were two years ago, and up 80% compared to this time last year.
In some areas, this has led to price stabilization while others are experiencing some downwards pressure on pricing. As is typical, market conditions do vary based on location, product category and price point. As of the end of June, year-over-year price changes range from -3% for apartment and townhomes, to +1.5% for semi-detached homes. Detached home prices have remained relatively stable overall, down 0.39% year over year.
DETACHED SECTOR
SEMI-DETACHED SECTOR
TOWNHOME SECTOR
APARTMENT SECTOR
2025 YTD NEWINFILLS MARKET UPDATE
SINGLE-FAMILY NEW INFILLS
Similar to the general real estate market, the single-family new infill market has also experienced a cooling off over the last 6 months.
After a few years of elevated sales activity, year-to-date sales of single-family new infills have now returned to more normalized levels, aligning with longer-term trends. Year-to-date sales in 2025 are down about 26% compared to last year, and 20% compared to 2023.
Similar to the overall real estate sector, inventories of available homes are also increasing. Average inventory levels for single-family new infills through 2025 were 173, up 38% compared to last year and 16% compared to 2023.
In part, rising inventories can be attributed to slower sales, but they are also a result of the boom in new development over the last few years. A slower market is expected to temper development in 2026.
Prices have remained stable so far in 2025; however, this is likely to change if inventories continue to rise.
NEW INFILL TOWNHOMES
After a few years of very low inventory levels, we are finally starting to see some available product in the new infill townhome sector.
Average inventory levels so far in 2025 have been 24 units for sale, a 50% increase compared to the last two years, although still relatively low compared to long-term trends for the city.
Infill townhome sales also remain soft compared to long-term trends, likely in part due to the limited availability of units for sale. That said, unlike the single-family sector, year-to-date sales of infill townhomes have remained similar to those of last year.
As the rental market continues to soften in Calgary, there is a good chance that some multi-family townhome projects originally intended for rental use will be converted into units for sale. This will help to bring supply back to more normal levels.
AGENT SPOTLIGHT
It's time to shine the spotlight on the newest member of our growing team.
1.- Why did you get into real estate?
I got into real estate because I truly enjoy connecting with people and building meaningful relationships. I’ve always had a passion for interior design, and I love helping clients see the possibilities in a space — whether it’s envisioning how to make it feel like home or elevating it to stand out on the market. Real estate gives me the perfect balance of creativity and connection.
2.- What is your focus when working with clients?
My focus when working with clients is providing a personalized, stress-free experience built on trust, communication, and genuine connection. I prioritize understanding their needs and guiding them through every step of the process with care.
3.- What do you love most about buying and selling homes?
The opportunity to be part of such a meaningful and exciting chapter in someone’s life. I love the mix of strategy, creativity and personal connection.
4.- What’s it like being on the Urban Upgrade & NewInfills team?
I’m surrounded by some of the most talented, passionate, and hardworking individuals in the industry, and the energy here is unmatched.
CALGARY DEVELOPMENT SPOTLIGHT
EAU CLAIRE'S MODERN MAKEOVER
One of Calgary’s most iconic downtown neighbourhoods just got a major upgrade.
After years of planning, consultation, and construction, the Eau Claire Plaza has officially reopened as a vibrant new gathering space for residents and visitors alike. Once home to the Eau Claire Market, this reimagined area now blends thoughtful urban design, playful recreation, and meaningful nods to Calgary’s past.
Set along the Bow River and at the edge of downtown, Eau Claire Plaza has long been a hub for foot traffic, festivals, and scenic river walks. Now, the space has been completely transformed into a dynamic, multi-use plaza that offers something for everyone, whether you're here for a morning stroll, a weekend market, or a summer festival.
The revitalized plaza includes:
- A central green space with seating and picnic areas
- A sandy urban beach with lounge chairs and umbrellas
- An integrated misting feature for summer cooling (which converts to lit safety bollards in winter)
- Market Street, a new pedestrian-friendly corridor that pays tribute to Eau Claire’s past
HIGH DENSITY PROPOSAL FOR MARDA LOOP
Marda Loop is on the brink of a new level of density.
Following City Council approval, a major rezoning has cleared the way for a new mixed-use development that could dramatically reshape one of Calgary’s most well-known inner-city communities.
The development is a partnership with Co-Op and Truman Homes, and proposes two 19-storey towers, an 11-storey building, and a six-storey structure on a two-acre site at 33 Avenue and 20 Street SW, which would be the first of its kind in Marda Loop.
A “next generation“ Co-Op grocery store is also planned.
With rezoning approved, the project now awaits a development permit. Construction could begin as soon as next year if approved.
Want to read the full article? Click here.
FIRST TIME HOMEBUYER PROGRAMS
WHAT FIRST-TIME BUYERS NEED TO KNOW:
There are a range of federal programs available to help first-time buyers take the leap into homeownership with less financial strain:
- HOME BUYER'S PLAN (HBP):
You may withdraw up to $60,000 from your registered retirement savings plan (RRSP) tax-free to buy your first home. - FIRST HOME SAVINGS ACCOUNT (FHSA):
You may be eligible to save up to $40,000 tax-free to buy a home with an annual contribution limit of $8,000. - THE HOME BUYER'S AMOUNT (TAX CREDIT):
Offers up to $1,500 in non-refundable tax relief, helping offset closing costs or other expenses. - GST/HST NEW HOUSING REBATES:
If you are buying a brand-new home, you may be eligible for a rebate for some or all of the GST paid.
THINKING OF BUYING YOUR FIRST HOME? WHY NOW MIGHT BE A SMART TIME!
- MORE OPTIONS: After years of extremely tight supply in the Calgary housing market, there is now much better availability of homes for sale. With more options available, you have a much better chance of finding a home that checks every box in the area you want to be.
- A BETTER PRICE: A softer market means fewer buyers to compete with and little to no bidding wars. Prices have started to cool slightly, and sellers are much more willing to negotiate on price.
- MORE FAVOURABLE TERMS: Now that the market has cooled, sellers are much more willing to work with offer conditions like home inspections or the requirement to sell another property to finance the deal.
- REASONABLE INTEREST RATES: Interest rates have come down from record highs and have stabilized at much more reasonable levels. This means affordable, more stable mortgage payments.
- BUILD YOUR OWN EQUITY AND FINANCIAL SECURITY: Buying your own home means you can finally start building your own equity and long-term financial security - instead of paying someone else’s mortgage!
THINKING OF MAKING THE LEAP INTO HOME OWNERSHIP?
We are here to help you make sense of your options. No pressure, no push, just smart guidance, tailored to your goals. Let’s talk!
We are here to help you make sense of your options. No pressure, no push, just smart guidance, tailored to your goals. Let’s talk!
MAKING HEADLINES
It’s been a year since Calgary approved blanket rezoning to allow rowhouses and townhomes (R-CG and similar) across all residential areas. The intent? Improve housing affordability and choice by enabling higher density.
So, was it a big change? On paper, absolutely. It’s now possible to build multi-unit infills in nearly every established neighbourhood, something that would’ve taken months of individual rezoning applications in the past. But in practice, the shift (at least so far) has been modest at best. Why?
CAUTION TO DEVELOP IN NEW AREAS
While the new zoning opens the door for more density across the city, many builders remain cautious of building outside of established infill areas given uncertainty around resale value and buyer demand.
A SOFTER RENTAL MARKET
Over the last year, the rental market in Calgary has seen a significant shift, now experiencing an abundance of inventory and falling rents. This has led some multi-family developers second guess moving ahead on their projects, citing concern about rental pricing and project feasibility.
COMMUNITY PUSHBACK
Some communities are banding together and pushing back on development in their areas. A highly vocal community can be disruptive to a builder and developer who is attempting to design and execute on a project, and word can spread through the building community that some areas are just not worth the extra time required to work on a project in an area that is opposed to development.
WHAT IS THE DEAL WITH RESTRICTIVE COVENANTS?
We're seeing more organized resistance from residents who want to preserve the low-density character of their streets, despite city-wide zoning updates. Many of these communities are looking towards restrictive covenants as the solution.
So what is a restrictive covenant (RC)? Essentially, it is a restriction on use that is registered on the title to a property, and therefore becomes enforceable across future ownership of the property. Some communities are asking all community residents to have a restrictive covenant registered on their titles to restrict density and future developments.
So do they work? In short, they can - but only if adopted by a community in large numbers. As each individual homeowner must opt in, development can still occur on lots that have chosen not to do so or that haven’t gotten around to it. Homeowners cannot impose restrictions on their neighbours, only themselves.
So do they work? In short, they can - but only if adopted by a community in large numbers. As each individual homeowner must opt in, development can still occur on lots that have chosen not to do so or that haven’t gotten around to it. Homeowners cannot impose restrictions on their neighbours, only themselves.
You can view our other Blog articles HERE.
