March 2025 Real Estate Market Report: Calgary and Area
Calgary Real Estate Market Overview
Sales Activity
In February 2025, Calgary recorded 1,721 home sales, marking a 19% decrease compared to February 2024. Despite this decline, sales remained above historical averages for the month, indicating sustained demand in the market.
The reduction in sales aligns with a market adjusting after consecutive years of heightened activity. Detached homes accounted for a significant portion of sales, while apartment-style units and row houses also maintained steady interest, driven by affordability and lifestyle preferences.
Inventory Levels
February 2025 saw 2,830 new listings, aligning with historical averages for the month. This influx contributed to a total inventory of 3,639 units, representing a 68.6% rise from the previous year. The sales-to-new listings ratio for the month was 61%, higher than historical averages but below levels seen in each of the last three years.
The months of supply—a measure of how long it would take to sell all current listings at the current sales pace—reached 2.1 months in February, up from one month the previous year. This indicates a shift toward more balanced conditions, though the market still favors sellers, particularly in specific property segments.
Benchmark Price
The overall benchmark price for Calgary real estate in February 2025 was $587,600, relatively stable compared to late 2024 and reflecting a 1% increase from February 2024.
- Detached Homes: The benchmark price stood at $760,500, a 5% increase year-over-year.
- Semi-Detached Homes: The benchmark price was $683,500, a 7% rise from the previous year.
- Row Houses: The benchmark price reached $446,880, nearly a 3% increase year-over-year.
- Apartment Condominiums: The benchmark price was $334,200, reflecting a 4% increase from February 2024.
These price trends highlight sustained appreciation across various property types, with detached and semi-detached homes experiencing the most significant gains.
Regional Market Insights: Airdrie, Cochrane, Strathmore and Okotoks
Airdrie
The Airdrie market aligned with its long-term averages in February 2025, with sales declining by 9% to 123 units, while new listings increased by 23% to 225 units. This shift pushed inventories to 345 homes, more than double the levels seen last year, resulting in a months of supply nearing three months, the highest since pre-pandemic levels. Despite these changes, the benchmark price remained stable at $537,600, reflecting a 1.6% increase year-over-year.
Cochrane
Cochrane experienced growth in both sales and new listings in February 2025, with sales reaching 75 units and new listings at 126 units, both above long-term averages for the market. Inventory increased by 48% year-over-year to 196 units, the highest level since spring 2021. This rise allowed the months of supply to recover to 2.6 months, the highest since the pandemic but still below historical levels for February. The relatively tight conditions supported prices nearing record-high levels, with the benchmark price increasing by 5% year-over-year to $577,100.
Strathmore
In February 2025, the Strathmore real estate market showed signs of stabilization. Sales activity remained consistent with long-term averages, totaling 30 units for the month. New listings increased by 15% year-over-year, reaching 50 units, which contributed to a modest rise in inventory levels to 75 homes. This increase in supply brought the months of supply to 2.5 months, indicating balanced market conditions. The benchmark price for residential properties in Strathmore experienced a 2% year-over-year increase, settling at $420,000.
These figures suggest that Strathmore’s housing market is maintaining steady growth, with a healthy balance between supply and demand supporting stable price appreciation.
Okotoks
February 2025 saw a 4% year-over-year decline in sales in Okotoks, totalling 45 units, aligning with long-term averages for the month. New listings increased by 7% compared to 2024, reaching 60 units, though still below typical February levels. Inventory recovered to 69 units, a 19% increase from 2024, but remained significantly lower than historical levels for the month. These tighter inventory levels kept the months of supply below typical February figures at just 1.5 months. Despite the tight conditions, the benchmark price for the month was relatively flat compared to January and under 1% higher than in 2024.
Advice for Buyers and Sellers
For Buyers
- Act Decisively: With inventory levels improving but still below historical norms, desirable properties may receive multiple offers. Being pre-approved for a mortgage and ready to make swift decisions can provide a competitive advantage.
- Explore Various Property Types: Consider a range of property types and neighborhoods to identify opportunities that align with your budget and lifestyle preferences.
- Stay Informed: Keep abreast of market trends and work closely with a knowledgeable REALTOR® to navigate the evolving landscape effectively.
For Sellers
- Leverage Market Conditions: The current market still favors sellers, especially in the detached and semi-detached segments. Pricing your property appropriately can attract serious buyers and potentially lead to favorable terms.
- Prepare Your Property: Investing in minor repairs, staging, and enhancing curb appeal can make your property more attractive to prospective buyers.
- Be Responsive: Promptly addressing inquiries and being flexible with showings can facilitate a quicker sale.
Interest Rate News From Mortgage Connection exclusively for CIR REALTY
Current Mortgage Rates & Market Trends
- Fixed Rates: Major banks and mortgage lenders have lowered fixed mortgage rates by 0.10% to 0.25% in 2025 following declines in bond yields. However, uncertainty around inflation and future rate movements has led lenders to maintain higher profit margins, rather than passing on the full potential savings to borrowers. As a result, fixed rates may not have dropped as much as bond market trends would suggest.
- Variable Rates: While the Bank of Canada has cut its policy rate, lenders have reduced the discounts on variable-rate mortgages, meaning borrowers should secure their discounts sooner than later. This cautious pricing reflects the outlook for Bank of Canada rate cuts.
Amortization Trends & Policy Changes
- Extended Amortization: The government now allows 30-year amortization for first-time homebuyers OR buyers purchasing newly built homes, reducing monthly payments and increasing qualification limits for these buyers.
Market Outlook & Considerations
- Interest Rate Uncertainty: Further rate cuts are expected, but inflation surprises and global economic shifts continue to influence mortgage pricing.
- Housing Demand vs. Supply: Improved affordability could drive homebuying activity, but limited inventory may lead to competition and upward price pressure.
With lenders balancing risk and profitability, mortgage pricing remains dynamic. Mortgage Connection is here to help CIR Realty clients navigate these changes with expert advice and tailored solutions.If you have any questions or need additional market insights, please don’t hesitate to reach out. Our entire team is accessible and ready to help you navigate this market.
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Ryan Smith