CALGARY – The city’s once-hot housing market showed significant signs of cooling last month, with home sales falling by 12% in July compared to the previous year. A new report from the local real estate board highlights a market grappling with soaring inventory and downward pressure on prices, a situation observers suggest is being compounded by investor anxiety, unique immigration patterns, and rising concerns over public safety.
According to the Calgary Real Estate Board (CREB), the market is undergoing a dramatic shift. There were 3,911 new listings in July, an 8.6% increase from a year earlier. This influx pushed the city’s total inventory to 6,917 homes for sale—a staggering 66.1% surge that brings supply to its highest point since before the pandemic.
This wave of available homes is weighing on prices. The residential benchmark price in July dipped to $582,900, marking a 3.9% decrease from July 2024.
However, CREB chief economist Ann-Marie Lurie notes the situation is nuanced. She clarifies that “price declines are not occurring across all property types in all locations of the city,” with the steepest drops seen in apartment and row-style homes. Lurie also points out that “even where there have been declines, it has not erased all the gains made over the past several years.”
Beneath these statistics lies a shifting narrative about who is buying and selling in Calgary. For years, the city’s relative affordability attracted a flood of out-of-province investors looking to purchase rental properties. Now, with the market turning, many of those same investors are reportedly facing difficulties, which may be contributing to the surge in listings as they look to offload their assets.
Adding another layer of complexity is a unique demographic of homebuyers: non-US citizens who have moved to Calgary with the goal of obtaining Canadian permanent residency and eventual citizenship, potentially as a stepping stone to working in the United States. While this group has contributed to housing demand, they often own homes in Calgary while planning their next move, creating a transient ownership base.
Compounding these economic pressures are growing social concerns. Many residents feel the city’s crime rate has gone wild, impacting the quality of life and potentially making Calgary a less attractive destination for both new families and investors. This sentiment can dampen buyer enthusiasm and motivate current owners to sell, further swelling the housing supply.
Together, these factors paint a picture of a market at a crossroads, where the simple laws of supply and demand are being influenced by investor confidence, international ambitions, and the pressing local issue of public safety.
