Calgary market points to finicky demand as supply rises from new homes

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Sellers in Calgary’s resale real estate market may be asking themselves where all the buyers have gone as the city’s economy remains strong, but sales continues to trend downward.

Indeed, some prospective buyers have stopped house-hunting for the time being, says Trung Bien, realtor with eXp Realty in Calgary.

“That said, when it comes to buyers sitting on the sidelines, it varies greatly depending on the area of the city and the housing type.”

Demand remains resilient for affordably priced homes that have long been in short supply, namely single-family detached and semi-detached dwellings, he adds. Calgary Real Estate Board statistics from September show that sales for detached homes gained four per cent year over year, and semi-detached increased five per cent.

Meanwhile, townhomes (row) fell 18 per cent, and apartments were off 14 per cent from September last year.

“It’s basically the state of the world that has really hit consumer confidence, affecting budget-conscious home buyers,” says Doug Koop, broker/owner of Re/Max Realty Professionals in Calgary.

Conditions are affecting sellers, too, as new listings fell in the city in September about 11 per cent year over year, leading to a decline in inventory, off more than six per cent.

Koop notes the engine of housing demand in Calgary — first-time buyers and move-up buying families — are most affected by uncertainty around tariffs, the referendum on separation and higher inflation, Koop says.

“The concern for many first-time buyers is being able to afford a mortgage.”

Many are simply challenged to find the home they seek at the price they can afford, even amid declines in pricing and demand.

Single-family detached homes continue to be popular, accounting for slightly more than half of the activity, but budget-restricted first-time buyers face financial barriers to entry.

The benchmark price for a detached home, a reflection of the typical home, was more than $739,000 in September, down one per cent year over year.

In contrast, townhomes and apartment condominiums are more affordable with benchmark prices of $412,400 and $291,400, respectively.

Koop notes that supply for condominiums is more than five months, increasingly favouring buyers.

All the same, first-time buyers are reluctant to purchase in the multi-family segment, Bien says.

“People don’t want to catch a falling knife,” he says about both housing types, which have experienced falling prices.

Row’s benchmark price was down six per cent year over year in September, while apartment prices were off eight per cent.

Driving downward pressure on prices is a boom in construction for multi-family properties: rentals, apartment condominiums and townhomes. Canada Mortgage and Housing Corp. statistics show Calgary experienced record housing starts from 2022 to 2025.

“Rents have really pulled back so there’s less urgency,” Bien adds.

“There is not a lot of FOMO (fear of missing out) anymore, and it’s been replaced with patience.”

Many would-be buyers, especially those seeking a first home, are taking time to save for a down payment to purchase a single-family detached home, he adds.

Conditions are slowing the detached market except in central neighbourhoods in the city’s west and south, where adding new supply is challenging and costly, Bien says.

In general, new single-family homes cost more than resale. CMHC data from August shows the average price of a new detached home was about $855,000 — though down about eight per cent from last year.

Koop notes the split conditions in the market are likely to persist for the near future.

“Detached prices are likely to hold up well,” he says. “But resale condos are likely to face continuing challenges, especially as more new product comes to market.”