Calgary Real Estate Market Update – December 2024
The year wrapped up with a strong performance in Calgary’s real estate market, showing resilience and continued price growth despite challenges. While December saw a slight decline in sales compared to 2023, overall, the market in 2024 outperformed long-term trends, particularly in the higher-priced segments. As we enter 2025, the real estate landscape in Calgary remains dynamic with a focus on supply and demand dynamics that will shape the coming year.
Calgary Sales and Inventory Overview
In December 2024, Calgary reported 1,322 sales, a slight 3% decrease compared to December 2023. However, this figure was nearly 20% higher than the long-term trends for the month, indicating a strong, consistent demand in the market despite seasonal slowdowns. For the year overall, Calgary’s real estate market was just shy of the previous year’s sales numbers, with notable gains in the higher-priced homes market, which helped offset challenges in the lower price ranges due to limited supply.
The total inventory at the end of December reached 2,989 units, marking an improvement over the previous year, although still below the long-term trend for the month. Despite this, the increase in inventory levels compared to earlier in 2024 provided some relief for buyers, especially as new listings from both the resale market and new home construction bolstered the supply side.
Calgary’s Price Trends and Property Types
2024 was a year of steady price growth, with total residential benchmark prices improving by over 7% year-over-year. In December, the total residential benchmark price was $583,300, a 0.7% increase compared to the same month in 2023. The price growth for detached homes remained strong, with the benchmark price for detached homes reaching $747,500, a 7.2% year-over-year increase. Prices for semi-detached homes saw a more moderate increase of 5.9%, with the benchmark price landing at $677,600.
Row homes and apartment-style properties also saw notable price increases, with row homes priced at $447,400 and apartments at $332,400, reflecting growth of 3.2% and 6.8%, respectively, compared to last year.
This price growth was driven by a combination of demand for higher-priced homes and improvements in supply, particularly in the second half of 2024, when new listings helped to balance out the market and ease some of the upward pressure on prices.
Supply Dynamics and Market Outlook for 2025
Looking forward to 2025, supply will continue to be a critical factor in Calgary’s housing market. While inventory levels improved toward the end of 2024, Calgary’s real estate market still faces challenges due to limited supply, especially in the lower price brackets. However, new home construction and an increase in available rental properties are helping to ease the supply crunch and support a healthier balance between demand and inventory.
The market’s performance in 2025 will depend on how well supply responds to demand, particularly in the face of any potential economic shifts. Higher-priced homes may continue to benefit from improved supply options, but demand for affordable properties will remain high, particularly as population growth continues to fuel housing demand.
CREB®’s forecast report, to be released on January 21, 2025, will provide further insights into the expectations and risks for Calgary’s real estate market in the coming year, especially as we navigate the evolving economic climate.
Key Takeaways for Calgary Real Estate in December 2024:
- Sales in December 2024 showed a 3% decline compared to last year but remained 20% higher than long-term trends.
- The total residential benchmark price reached $583,300, showing a 0.7% annual increase.
- Detached homes saw a 7.2% increase in price, reaching a benchmark of $747,500.
- Supply improved with 2,989 units in inventory, although still below long-term trends.
- The real estate market in Calgary remains competitive, particularly in the higher price ranges.
- CREB® will release a forecast report in January 2025, providing more insights on market expectations for the upcoming year.
As we move into 2025, Calgary’s real estate market is expected to remain strong, driven by sustained demand, ongoing population growth, and the continuing evolution of supply dynamics. Buyers and sellers alike should keep an eye on inventory levels and price trends as they navigate the market in the new year.
Calgary Surrounding Areas
In 2024, the detached home market saw notable price increases across several regions, with the benchmark price for detached homes rising in all areas.
- Canmore led the way with a 7.1% increase, bringing the benchmark price to $1,636,700.
- Airdrie experienced a more modest rise of 5.7%, with the benchmark price reaching $641,700.
- Cochrane followed closely behind with a 6.4% increase, bringing its benchmark price to $670,700.
- Strathmore saw the highest percentage gain in detached home prices, up 8.6%, with the benchmark price reaching $541,300.
- Chestermere posted a solid 10.1% increase, pushing its benchmark price to $790,500.
- Okotoks saw an impressive 10.3% rise, with the benchmark price for detached homes reaching $690,100.
- High River rounded out the list with a 7.5% increase, bringing the benchmark price to $552,100.
Across the board, all regions saw year-over-year price growth, reflecting strong demand and a competitive market for detached homes in 2024.
Airdrie Real Estate Market
In 2024, Airdrie’s real estate market showed solid performance, with 1,951 sales recorded, marking an over 4% increase from the previous year. This growth was supported by a boost in new listings, which helped improve supply, particularly in the latter part of the year. As a result, inventory rose to 245 units by December, and months of supply increased to 2.43 months, signaling a shift toward more balanced conditions.
While the market saw some stabilization in the final quarter, taking pressure off prices, the benchmark price for homes in Airdrie still rose by nearly 8% on the year, outpacing last year’s growth. Prices increased across all property types, with higher-density homes experiencing faster growth due to their more affordable price points. Despite a shift toward balance, Airdrie remains a competitive market, and the trend of rising prices is expected to continue into 2025.
Cochrane Real Estate Market
In 2024, Cochrane’s real estate market was characterized by strong seller conditions for most of the year, driven by robust sales relative to new listings. This dynamic prevented significant changes in inventory levels throughout much of the year. However, as the year progressed into the fourth quarter, the market began to shift towards more balanced conditions, with an increase in new listings compared to sales. This shift led to an easing of the sales-to-new listings ratio and helped support some inventory growth.
By the end of the year, inventory levels in Cochrane had reached 146 units, pushing the months of supply to 3.74, indicating a slight easing of the previously tight market. While this increase in inventory helped take some pressure off home prices, it wasn’t enough to offset earlier price growth.
As a result, the benchmark price for homes in Cochrane saw a strong annual increase of 9%, reaching $571,600 by December. This continued upward trend reflects sustained demand and limited supply despite the market’s gradual shift toward more balanced conditions.
Okotoks Real Estate Market
In 2024, Okotoks’ real estate market saw continued seller-favorable conditions, despite some improvements in inventory levels. New listings increased by 16% year-over-year, supporting a nearly 8% growth in sales. However, inventory levels throughout most of the year remained significantly lower than typical, averaging just 50 units in inventory, resulting in 1.92 months of supply by December. These low inventory levels have continued to fuel tight market conditions, which have prevailed in Okotoks since 2021.
The tight market drove price growth at an even faster pace than last year, with the benchmark price rising to $612,400, reflecting a nearly 8% increase compared to 2023. This sustained price increase, coupled with a rise in activity for semi-detached and row-style homes, led to even tighter conditions in these segments, with price growth exceeding 11% for those property types. Despite the slight increase in inventory, demand remained high, keeping Okotoks firmly in a seller’s market for another year.
Conclusion
As we move into 2025, the regional housing markets across Calgary, Airdrie, Cochrane, Okotoks, and surrounding areas are poised for continued growth, driven by strong demand and tight inventory. While some markets, like Airdrie, are shifting toward more balanced conditions with increasing inventory, cities such as Okotoks and Cochrane are still experiencing seller-favored conditions. Price growth was consistent across these regions in 2024, with benchmark prices rising significantly year-over-year, particularly for detached homes.
New listings helped support some inventory growth, but it hasn’t been enough to shift the market toward buyers. As we head into the new year, expect competitive conditions to persist, with sellers continuing to see strong returns. Buyers will need to navigate the market carefully, while sellers can take advantage of favorable conditions before potential shifts in the market landscape.
Stay tuned for the latest market updates and consult with a local expert from Maverick Group to help you navigate the 2025 real estate environment!
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