Calgary Real Estate Market Update: What to Expect in 2025

Calgary Real Estate Market Update: What to Expect in 2025

Diane Richardson, Realtor®
Contact: 403-397-3706
Website: www.dianerichardson.ca

The Calgary real estate market in 2025 is set to be shaped by a combination of economic conditions, demographic changes, and evolving buyer preferences. Here’s an in-depth look at what to anticipate based on current trends and expert analysis.

1. Rising Home Prices

Home prices in Calgary are expected to continue their upward trend, with the average price projected to reach approximately $810,000 in 2025. This increase is driven by strong demand for housing and limited supply. Annual price growth of around 5% is anticipated, fueled by population growth and an influx of new residents from across Canada and abroad.

2. Impact of Interest Rates

High mortgage rates, currently hovering near 5%, have created affordability challenges for many buyers. While a slight decline in rates is expected in early 2025, uncertainty remains about the extent and timing of these changes. Buyers may need to navigate fluctuating borrowing costs as they assess their options.

3. Supply and Demand Dynamics

The imbalance between housing supply and demand continues to be a significant factor in Calgary’s real estate market. Although new housing developments are underway, inventory levels remain low, especially for homes priced under $500,000. This shortage has intensified competition among buyers, contributing to rising prices.

4. Shifting Buyer Preferences

There is a noticeable shift in buyer interest toward more affordable housing options like condos and townhomes. Rising detached home prices have pushed many first-time buyers to consider multi-family dwellings, a trend likely to persist as affordability becomes increasingly critical.

5. Demographic Influences

Calgary's population growth remains strong, attracting younger families and professionals seeking job opportunities and a high quality of life. This demographic trend is expected to sustain demand, particularly in family-oriented neighborhoods with access to schools, parks, and amenities.

6. Economic Factors

Calgary’s economy is showing resilience, supported by industries like energy, technology, and healthcare. Economic stability boosts consumer confidence, encouraging home purchases despite rising prices. However, global economic conditions and immigration policies may also influence the market’s trajectory.

7. Potential Market Corrections

While the overall outlook is positive, there is a possibility of market corrections due to high mortgage rates and increasing inventory levels. Analysts consider Calgary a moderate-risk market, suggesting that external pressures could lead to pricing or sales activity adjustments.

8. Investment Opportunities

Calgary continues to attract real estate investors with its comparatively affordable property prices and competitive rental yields. As new developments emerge, the city offers promising opportunities for investors seeking to capitalize on future growth.

Conclusion

As we move into 2025, Calgary's real estate market is poised for growth amidst evolving economic and demographic dynamics. While rising prices and high interest rates pose challenges, strong demand indicates ample opportunities for buyers and investors alike.

For personalized guidance or to stay informed about Calgary’s real estate market, reach out to Diane Richardson, Realtor®. Call 403-397-3706 or email at diane@mypadcalgary.com. Let me help you navigate this vibrant market with confidence and ease!

All information herein deemed reliable, but not guaranteed. Copyright © 2024, Diane Richardson, all rights reserved.