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Prior to the US election and even our own PM resigning, if you asked most economist, they would have likely said we are in for a modest year in growth with sales remaining close to the same as 2024, with an increase in inventory leading to a more balanced market.
Now… well, here we are. Our closest ally and trading partner has singled us out, amongst others, threatening tariffs and sending our leaders and the world markets scrambling to figure out how to handle this. In addition, our leader, or lack thereof, has resigned and refuses to call an election. All this while polarising taxes have been imposed while others remain hanging in the wind. An unfortunate circumstance, to say the least, that only hurts the working people who pay the very wages of those leaders through taxes.
With so many things up in the air, where does that leave us and what does it mean for the Calgary real estate market?
Calgary real estate has seen yet another strong year, both in sales and prices. 2024 sales ended only slightly below 2023 and almost on par from the 2024 CREB forecast. Inventory has risen slightly, impacting specific sectors while others remain less affected. Affordable options in the detached sector remain competitive for buyers.
We may not know what the next 12 months holds, but I think it is important to look at some of the facts. Calgary has seen some record numbers in migration/immigration, sales, and sale prices. With that said, we remain a more affordable option than other major cities in the country. Post COVID (2020) we experienced some record-breaking years in sales and average sale prices, with sales only to be slightly tapered due to lack of inventory. Year over year the total average sale price has increased 7.6% (2021), 4.9% (2022), 4.3% (2023) and 12.6% (2024) respectively. Bottomline, real estate remains to be a good investment.
Home ownership and real estate is a long game. The “market frenzy” we’ve experienced has made people forget what normal market conditions are. Calgary has remained an affordable place to live and work for young families. We’ve struggled with inventory and record-breaking migration that has pushed prices up and kept inventory low.
Although there is much uncertainty, I think we can expect a more modest year ahead. A pullback in immigration/migration, continued new builds (which Alberta led the country in 2024), new purposeful rentals coming online, the threats of tariffs, political/economical uncertainty, and our own pending election will inevitably play a key factor in how the year unfolds. With the latter having the greatest uncertainty and impact. It may be a slow, or seemingly slow, year ahead.
As the market ebbs and flows, my role remains the same; I assist my clients in navigating these very waters. Helping them make sound decisions in any market or life circumstance that they are currently faced with. As the year progresses, my hope is that we see some stability from our government and new leaders to come and less pressure on those they represent.
(403) 404-3165
