Calgary’s housing market finished 2025 on a more balanced foot compared with recent years, with activity and prices showing signs of stabilization after a long period of adjustment. Following a stretch of cooling that began as interest rates rose and affordability tightened, the local market is no longer characterized by rapid declines or sharp downturns. Instead, recent data suggest closing trends that point to a leveling‑off in both sales and prices as year‑end approached.
One of the most notable aspects of Calgary’s housing landscape this year was the moderation of price declines that had persisted through much of the housing correction phase. While prices remain below the peaks seen earlier in the decade, the pace of decreases slowed appreciably in the final months, indicating that buyers and sellers are finding more common ground. This shift toward equilibrium can help reduce volatility and support more sustainable market conditions going into 2026.
Sales activity also reflected this trend. After periods of subdued transaction volume earlier in the year, recent months showed modest increases in closed deals, especially in segments such as single‑family homes and townhouses. Analysts interpret this as a sign that affordability constraints are easing slightly for certain buyer groups, and that buyer confidence is improving as mortgage rate expectations have stabilized and borrowing costs show less abrupt movement.
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Inventory levels in Calgary likewise moved toward a tighter balance. Excess supply — a hallmark of earlier parts of the housing adjustment — diminished as listings were absorbed more steadily by the market. A balanced inventory helps temper downward pressure on prices, since less oversupply reduces the need for sharp seller discounts. This dynamic has helped underpin the more stable pricing environment observed late in the year.
Local economic conditions played a supporting role. Calgary’s labour market — closely tied to the energy sector and related industries — has shown resilience, with employment trends that help sustain buyer demand. Economic confidence, even if cautious, contributes to buyer willingness to transact and reduces the likelihood of distress‑driven sales that can undercut prices.
Despite these stabilizing forces, some challenges remain. Affordability for first‑time buyers is still a concern, as household incomes have not kept pace with price levels achieved in earlier years. Additionally, certain neighbourhoods and property types continue to experience more pronounced pricing pressure than the citywide averages suggest.
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Looking ahead, market watchers expect 2026 to be a year of gradual normalization, with slower, steadier price movement and transaction activity that better reflects underlying economic fundamentals rather than speculative swings. For buyers and sellers alike, the key takeaway from Calgary’s 2025 housing performance is that the market appears to be settling into a more predictable and sustainable pattern after a period of sharp adjustments.
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