Inventory growth and slower sales helping balance market, soften pricing pressures
Calgary’s residential housing market is showing signs of returning to balance, following steep pullbacks in apartment condominium sales and rising inventory levels.
The Calgary Real Estate Board (CREB) reported that total residential sales dropped 17% year over year. However, sales for the month, totalling 2,568, remain 11% above long-term May averages and slightly improved from April.
Inventory growth is outpacing sales as new listings continue to climb, leading to a more balanced market with 2.6 months of supply, unchanged from April but notably different from the seller’s market Calgary experienced in previous quarters.
“Compared to last year, easing sales and rising inventories are consistent trends across many cities, as uncertainty continues to weigh on housing demand,” CREB chief economist Ann-Marie Lurie said in the report. “However, prior to the economic uncertainty, Calgary was dealing with seller market conditions, and the recent pullbacks in sales and inventory have helped shift us toward balanced conditions taking the pressure off prices.”
While detached and semi-detached homes are holding relatively stable, row and apartment-style units are seeing price softening due to increased supply.
Detached home listings rose to 2,419 units in May, mainly driven by properties priced over $600,000. Sales activity softened across most price points, fostering balanced conditions and stable prices. City-wide, the unadjusted benchmark price for detached homes was $769,400, flat from April, up 1% from May 2024, and still above last year’s seasonal peak.
Some districts, particularly the Northeast, are seeing larger supply increases and weakening demand. In that area, the sales-to-new listings ratio dropped to 41%, and months of supply reached nearly four, causing localized price declines.
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In May, 428 semi-detached homes were listed, with 256 sold. This pushed the sales-to-new listings ratio to 60% and kept the months of supply slightly above two. Despite these shifts, demand for semi-detached units remains solid, partly because more developers are building row homes instead.
Benchmark pricing for this segment rose to $697,300, up less than 1% monthly and nearly 3% annually, remaining above last year’s seasonal high.
Row home sales have cooled from last year’s near-record pace but remain above long-term norms. Inventory continued to climb for the second consecutive month, surpassing 1,000 units, a high not seen since 2021.
Sales of apartment condos tumbled to 579 units, down significantly from May 2024’s high of 907. While new listings are also lower year over year, they remain elevated relative to sales, driving inventory growth and pushing months of supply to 3.6.
Increased rental construction is further softening demand among potential buyers and investors. As a result, the benchmark apartment condo price declined to $335,300, down from April and over 1% below May 2024.
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