Record high new home starts activity in Calgary over the past three years is slowing the resale home market. Photo by Claire Young /Postmedia

Article content

Calgary’s typically busy spring real estate market turned out not to be so eventful this time around.

Article content

Sales and prices at the halfway point of the year reflect generally lacklustre activity in the city’s real estate market, at least compared with the recent past, says Ann-Marie Lurie, chief economist at the Calgary Real Estate Board.

Article content

Article content

”Sales are down more than we expected at this point of the year, and a lot of that has to do with the fact that there’s been a steeper pullback in migration.” Lurie points to the latest data from the Government of Alberta showing a modest net population increase of about 5,000 from October to January.

Article content

Article content

“We’re really seeing a pretty steep pullback in international migrants, and the challenge is that our supply is rising at the same time from new construction that is just now being completed.”

Article content

Article content

Sales have declined year over year across all housing types, but some segments face stiffer headwinds, notably apartment style units, Lurie adds. CREB data from late June shows apartment sales, year to date, were down 27 per cent. That’s building on a previous decline of about 28 per cent from 2024 to 2025. The average price also dropped nearly four per cent in the first half of the year to $339,361.

Article content

Detached homes fared better with sales down about four per cent YTD, and the average price largely flat at $823,330.

Article content

“Our single-family market is still pretty tight, hovering around three months of supply,” says Corinne Lyall, broker/owner of Royal LePage Benchmark in Calgary.

Article content

Yet demand for even these homes depends on price, the home’s condition, and location. Lyall notes homes priced less than $700,000 are seeing the most demand.

Article content

“The majority of buyers will exist in those lower price ranges.”

Article content

Article content

Like apartment condominiums, townhomes are also seeing downward pressure. Sales are down nearly 16 per cent, YTD, and the average price is off almost five per cent to $449,896. Semi-detached sales also decreased, albeit slightly, while the average price ($687,425) was largely flat.

Article content

Another factor weighing on resales is record high new home activity in the city over the past three years, especially for multi-family construction, which has affected the rental and condominium markets.

Article content

“People have more choice,” Lurie says. “They can buy new or stay in rental, and that is really impacting the existing condo market.”

Article content

Despite starts falling significantly year over year in the new homes market, completed and unabsorbed units are at the highest level since 2020, reflecting previous multi-year record highs.

Article content

Even single-family home resales have been affected.

Article content

“In the north, for example, there’s a lot of brand new communities,” Lurie says. “So if you’re trying to sell a home that’s not that far from those new communities, that’s putting pressure on pricing and dampening demand.”

Article content

Overall, declines in price and demand are likely to continue for the remainder of the year, but at a more modest pace, given the labour market remains strong, Lurie says.

Article content

Even with the expected decreases, the resale market still reflects a balance between supply and demand with activity above the 10-year average, she adds.

Article content

“We’re still seeing sales; it’s just that buyers have more choice.”

Article content