Apartment and row-style homes experienced the sharpest price drops, according to the latest data from the Calgary Real Estate Board (CREB).
Calgary’s housing market, once the hottest in the country, showed clear signs of cooling in August as increased supply put downward pressure on prices, particularly for higher-density homes.
While detached and semi-detached properties saw only modest declines, apartment and row-style homes experienced the sharpest price drops, according to the latest data from the Calgary Real Estate Board (CREB).
“Perspective is needed when it comes to price adjustments. The most significant price adjustments are occurring for row and apartment style homes as they are also the product type that are facing the largest gains in supply choice,” Ann-Marie Lurie, chief economist at CREB, said.
“Meanwhile price adjustments in the detached and semi-detached markets range from modest price growth in some areas to larger price declines in areas with large supply growth. Overall, recent price adjustments have not offset all the gains that have occurred over the past several years,” Lurie said.
The unadjusted total residential benchmark price in August fell to $577,200, down nearly 4% year-over-year. Sales dropped to 1,989 units, almost 9% lower than last year, but still above long-term averages.
Inventory climbed to 6,661 units, the highest August level since 2019, pushing months of supply to 3.4, well above the seller’s market conditions of recent years, but still short of pre-pandemic buyer’s market territory.
Higher-density homes lead price declines
The most pronounced price corrections hit apartment condos and row homes. The benchmark price for apartments dropped to $326,500, marking the fifth straight monthly decline and nearly six per cent below last August.
“Most of the supply is concentrated in the City Centre, which reported a year-over-year decline of 5%,” CREB reported. Row homes saw a benchmark price of $439,600, down nearly 5% year-over-year, with the steepest drops in the North East, North, South, and East districts.
Detached homes, while not immune, fared better. The benchmark price slipped to $755,600, just 1% below last year. The North East and East districts saw the largest declines at 5%, while the city centre posted a 2% gain. Semi-detached homes held steadier, with the benchmark price at $687,200, up nearly 1% year-over-year.
Regional shifts and broker perspectives
Airdrie’s benchmark price fell 4% year over year, while Cochrane remained stable and Okotoks saw only minor declines.
Meawhile, during the height of the remote-work revolution, Calgary’s affordability and lifestyle advantages drew buyers from across Canada, especially from Toronto and Vancouver. Flexible work arrangements allowed these buyers to escape sky-high prices in their home provinces, driving up Calgary’s sales and prices. “Flexible remote and hybrid work arrangements were a key driver of migration in recent years,” Max Singh, a Calgary-based broker with TMG The Mortgage Group, previously told Canadian Mortgage Professional.
Where once the city was a haven for remote workers and out-of-province buyers, today’s environment is defined by rising supply, moderating prices, and the likelihood of higher mortgage costs for the foreseeable future.
“In my view, return-to-office trends may moderate the pace of out-of-province demand to some degree, but they won’t reverse it entirely,” Singh said. “Instead, we’ll likely see buyers more carefully weighing commuting realities and hybrid work flexibility when deciding how far they can live from major cities.”
