Are Real Estate Prices Dropping in Calgary? What Buyers & Sellers Should Watch

Introduction: Understanding Calgary's Price Correction

After years of rapid appreciation, Calgary's real estate market is experiencing notable price adjustments in 2025. Headlines about dropping prices have some buyers excited and sellers concerned, but the full story is more nuanced than simple price declines suggest.

This comprehensive analysis uses the latest Calgary Real Estate Board (CREB) data from August and September 2025 to examine what's really happening in Calgary's housing market, which property types are affected most, and what buyers and sellers should watch moving forward.

The Big Picture: Yes, Prices Are Declining

As of August, the unadjusted total residential benchmark price was $577,200, down over last month and nearly four percent lower than levels reported last year. Calgary's average home price in September 2025 was $615,005, showing a significant moderation after the market peaked in May 2025 at $650,239.

The 1,720 sales in September were not high enough to offset the 3,782 new listings coming onto the market, driving further inventory gains. There were 6,916 units in inventory in September, 36% higher than last year and over 17% higher than levels traditionally reported in September.

The data confirms that Calgary prices are indeed declining from their 2025 peak. However, context is critical— these adjustments follow several years of exceptional growth, and current prices remain substantially higher than pre-pandemic levels.

The Supply Surge: What's Driving Price Declines

Improving supply choice has changed the dynamics of the Calgary market driving price declines over the past several months. The fundamental driver of price adjustments isn't collapsing demand but rather a normalization of inventory levels.

New listings remain elevated, keeping the sales-to-new-listings ratio below 60% and pushing inventory to 6,661, the highest August amount since 2019. More inventory choice coupled with lower sales has caused the months of supply to rise to 3.4 months in August, much higher than the sellers' market conditions reported over the previous four years.

This represents a shift from extreme seller's market conditions to more balanced market dynamics. While 3.4 months of supply feels dramatically different than the sub-two-month inventory levels of recent years, it is still well below the buyer market conditions observed prior to the pandemic.

Not All Properties Are Equal: Type Matters Dramatically

The most important insight from CREB data: price declines vary significantly by property type. Higher price adjustments are occurring for apartment and row style properties while detached and semi-detached properties have reported modest declines.

Detached Homes: Modest Declines

The unadjusted benchmark price in August was $755,600 down by nearly one percent over last month and last year's levels. The detached market shows remarkable resilience with only minimal year-over-year declines.

While prices have eased there is significant variation depending on location. Compared to last year, prices reported the largest decline in the North East and East district at five percent, while prices in the city centre were over two percent higher.

As many of the adjustments have occurred over the past few months, year-to-date Calgary prices remain two percent higher than last year. This means despite recent softness, detached homeowners who purchased in 2024 have still seen appreciation.

Semi-Detached Homes: Holding Steady

In August the unadjusted benchmark price was $687,200 down over last month, but nearly one percent higher than last year, and nearly four percent higher on a year-to-date basis.

Semi-detached properties demonstrate even better price performance than detached homes, with year-over-year gains still positive. The months of supply remained below three months in August. This is one of the reasons that the prices have not seen the same adjustment.

Row Homes: Meaningful Corrections

In August, the unadjusted benchmark price in the city was $439,600, reflecting the fourth consecutive monthly decline and nearly five percent lower than last August.

Row homes show more significant price declines than detached or semi-detached properties. While prices eased across all districts, price declines exceeded five percent in the North East, North, South and East districts.

In August, there were 1,103 units in inventory, reaching the second highest level on record for August, only slightly lower than the record high reported in 2018. The combination of increased supply and moderating demand creates downward price pressure.

Apartment Condominiums: Steepest Declines

As of August, the unadjusted benchmark price was $326,500, reflecting the fifth consecutive monthly decline and nearly six percent lower than levels reported last August.

Apartments face the most challenging conditions. While August inventory levels did not rise over last month, with 1,979 units available, this is the highest August inventory ever reported.

The months of supply for apartment condos have remained around four months since June. The excess supply relative to demand has been weighing on prices.

Most of the supply is concentrated in the City Centre, which reported a year-over-year decline of five percent, slightly higher than the rate of decline reported in the West district at three percent. Meanwhile, the highest price declines occurred in the North East district at over 11 percent.

Location Matters: Geographic Price Variations

Price performance varies dramatically across Calgary's districts. The North East, North, and East districts consistently show larger price declines across all property types, while City Centre detached homes actually appreciated.

This geographic variation reflects several factors:

Supply concentration: New developments and resale listings concentrated in certain districts create localized oversupply.

Economic factors: Districts with higher exposure to oil and gas employment or lower income levels face softer demand.

Competition from new homes: Areas with significant new construction face pricing pressure as buyers choose between new and resale properties.

Amenity access: Central locations with better transit, employment, and lifestyle amenities demonstrate better price resilience.

What Buyers Should Watch

Opportunity in Selective Property Types

For buyers, the current market presents opportunities, particularly in higher-density properties. Apartment condominiums showing 6% year-over-year declines offer substantially better value than a year ago, while detached homes show minimal discounts.

Budget-conscious buyers should focus on:

• Apartment condominiums for maximum price improvement
• Row homes in high-supply districts
• North East, North, and East districts for all property types
• Properties that have been on market 30+ days for negotiating leverage

Beware False Bottom-Fishing

While prices have declined, overall, recent price adjustments have not offset all the gains that have occurred over the past several years. Buyers hoping for 2019 prices will be disappointed—the market has corrected but not collapsed.

Sales have slowed compared to the high levels reported over the past four years. However, activity is still above long-term trends, reflecting relatively strong demand. This indicates fundamental support for current pricing despite adjustments.

Interest Rate Considerations

Interest rates significantly impact affordability. While prices have declined 4% from peak, mortgage rates remain elevated compared to 2020-2021 levels. Total ownership costs may not have improved as much as headline price declines suggest.

Buyers should:

• Get pre-approved and understand total carrying costs
• Stress-test affordability against potential rate increases
• Consider rate buydown strategies or variable rate mortgages
• Calculate break-even timelines for different scenarios

Timing the Market Risks

Attempting to time the absolute bottom proves difficult. While the market is much more balanced compared to last year, there is significant variation depending on property type, price range and location.

Markets can stabilize quickly. If economic conditions improve or immigration increases, demand could surge before supply fully normalizes, reigniting price growth. Buyers with long-term horizons should focus on purchasing properties that meet their needs at prices they can afford rather than optimizing for the perfect entry point.

What Sellers Should Watch

Price Expectations Require Adjustment

Sellers must recognize the market has fundamentally changed from 2023-2024. Both row and apartment style homes have reported the largest boost in supply compared to long-term trends.

Properties that would have sold quickly at premium prices now face:

• Longer days on market
• More buyer negotiating leverage
• Potential for price reductions
• Competition from multiple similar listings

Realistic pricing becomes essential. Overpriced listings languish while well-priced properties still sell reasonably quickly.

Property Type and Location Critical

Sellers of detached homes, particularly in City Centre and desirable districts, maintain stronger negotiating positions than those selling apartments or row homes in high-supply areas.

Before listing, sellers should:

• Research recent comparable sales in their specific area
• Understand property-type-specific market dynamics
• Assess district-level supply and demand conditions
• Consider timing relative to seasonal patterns
• Evaluate urgency versus price optimization trade-offs

Strategic Positioning Matters

In balanced markets, property presentation, pricing, and marketing become more important. Sellers who invest in staging, professional photography, minor repairs, and competitive pricing generate more buyer interest and better offers.

Properties with unique features, superior locations, or move-in condition maintain pricing power. Generic properties in high-supply areas face the steepest discounting pressure.

Hold or Sell Decision Framework

Sellers should consider:

Selling makes sense if:

• You need to relocate or downsize urgently
• Your property type faces significant oversupply (apartments, row homes)
• Your district shows largest price declines (North East, East, North)
• You can accept current market pricing
• Carrying costs strain your finances

Holding makes sense if:

• You own detached or semi-detached properties
• Your location shows price resilience
• You have long-term investment horizon
• Carrying costs remain manageable
• You believe current correction is temporary

Expert Perspective: CREB Chief Economist Insights

"Perspective is needed when it comes to price adjustments. The most significant price adjustments are occurring for row and apartment style homes as they are also the product type that are facing the largest gains in supply choice," said Ann-Marie Lurie, Chief Economist at CREB.

"Meanwhile price adjustments in the detached and semi-detached markets range from modest price growth in some areas to larger price declines in areas with large supply growth. Overall, recent price adjustments have not offset all the gains that have occurred over the past several years".

This expert perspective reinforces several key points:

• Price declines are supply-driven, not demand-collapsed
• Different property types face vastly different conditions
• Current prices remain elevated despite recent corrections
• Market dynamics vary significantly by location
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Regional Market Context

Airdrie: Similar Pressures

In August, the unadjusted total residential benchmark price was $531,100, down over last month and four percent lower than levels reported last August. Airdrie faces similar challenges to Calgary with increased supply weighing on prices.

Cochrane: Resilience Story

Despite the shift this month, prices in Cochrane remained relatively stable in August, with the unadjusted benchmark price sitting at $589,100, similar to last month and nearly two percent higher than last year. On a year-to-date basis prices are four percent higher than the previous year.

Cochrane demonstrates that markets with strong population growth and lifestyle appeal can resist broader pricing pressures.

Looking Forward: What to Expect

Short-Term Outlook (6-12 Months)

Expect continued price stabilization or modest further declines as:

• Inventory levels remain elevated
• New construction completions add supply
• Economic uncertainty tempers buyer enthusiasm
• Seasonal winter slowdown reduces activity

However, outright price collapses appear unlikely given continued positive immigration, economic growth, and sales activity above long-term trends.

Medium-Term Outlook (1-3 Years)

Market balance should gradually return as:

• Construction responds to current oversupply by slowing
• Population growth absorbs excess inventory
• Demand normalizes to sustainable levels
• Price appreciation resumes at moderate rates

Different property types will recover at different speeds, with detached homes likely stabilizing first and apartments taking longer.

The Bottom Line: Context Is Everything

Yes, Calgary real estate prices are dropping, but the story is far more complex than a simple decline narrative:

• Overall benchmark prices down 4% year-over-year
• Apartment condos down 6%, detached homes down only 1%
• Geographic variation significant—some areas up, others down 5-11%
• Supply surge, not demand collapse, driving adjustments
• Sales remain above long-term trends despite slowdown
• Prices still elevated compared to pre-2021 levels
• Market shifting from extreme seller's to balanced conditions

For buyers: Opportunities exist, particularly in higher-density properties and high-supply districts, but don't expect pre-pandemic pricing. Focus on properties meeting your needs at prices you can afford rather than timing the perfect bottom.

For sellers: Adjust expectations, price competitively, and recognize property type and location matter enormously. Detached homes in desirable areas maintain pricing power; apartments and row homes face steeper discounting pressure.

For everyone: Current market dynamics represent normalization, not collapse. Calgary's strong economic fundamentals, population growth, and below-replacement construction rates suggest current corrections create temporary opportunities rather than long-term declining values.

The question isn't simply whether prices are dropping—they are. The real question is whether current price levels represent value relative to your specific circumstances, timeline, and alternative options. For many buyers and sellers, the answer remains "yes."