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In 2025, housing demand is expected to remain above long-term trends, supported by past gains in population and employment, easing lending rates, and better supply options However, factors such as slowing migration from record highs, increased competition from new home construction, and heightened economic uncertainty are likely to limit further growth in resale activity Despite this, the forecasted sales of over 26,000 units reflect a strong housing market, with activity levels over 20 per cent higher than long-term trends Market shifts in 2025 While overall sales levels are expected to remain stable, the distribution of sales may change Easing rental rates, driven by higher completions and slower international migration, are anticipated to impact the condominium market Meanwhile, lower lending rates, improved supply, and continued, though slower, migration from other provinces are expected to support growth in detached home sales Record-high new construction levels are adding supply to the market, contributing to an increase in resale listings As more new homes are completed in 2025, the overall supply is projected to grow This shift should help the market move toward more balanced conditions, slowing price growth to an annual gain of three per cent .

 

Click here for the full CREB® 2025 Forecast Calgary and Region Yearly Outlook Report.

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City of Calgary, Jan. 23, 2024 – The Calgary Real Estate Board (CREB®) is pleased to announce the release of its highly anticipated 2024 Forecast Calgary and Region Yearly Outlook Report. This comprehensive report, prepared by CREB® Chief Economist Ann-Marie Lurie, offers a detailed analysis of Calgary's economic and housing market trends and surrounding areas for the upcoming year.

The report delves into the impact of rising lending rates on the housing sector, as buyers looked for more affordable housing options, and some potential sellers held back from listing to navigate the challenges posed by higher lending rates.
 
Chief Economist Ann-Marie Lurie underscores this dynamic, stating, "Despite higher rates, 2023 was a year of relatively strong sales thanks to a robust labour market and strong migration. The challenge was limited supply, especially for low-priced homes with the strongest demand. This resulted in significant price growth with the largest gains in our lowest-priced homes.”
 
As the report looks ahead to 2024, Lurie anticipates another strong year for sales, stating, "We expect potential buyers, who were on the sidelines due to limited supply choices, to re-enter the market as lending rates ease and listings improve. At the same time, interprovincial migration and a healthy labour market should continue to support stronger sales activity.”
 
Supply remains an issue this year, but gains in new home starts and new listings are expected to support some modest gains.
 
“Conditions are not expected to be as tight as in 2023," Lurie said, "but supply growth takes time, and sellers’ market conditions are expected to persist through the spring, driving further price growth in 2024.”
 
Supply growth is anticipated to be driven mainly by upper price ranges, decelerating the pace of price growth for higher-priced properties. Meanwhile, lower-priced properties are expected to face continued tight conditions, contributing to sustained price gains.
 
CREB® remains committed to providing valuable insights to industry professionals and the public, fostering informed decision-making in the ever-evolving real estate landscape.
 
Click here for the full CREB® 2024 Forecast Calgary and Region Yearly Outlook Report.