Welcome to the March Edition of the Smith & Griffith Real Estate Newsletter!
As the days grow longer and the winter chill begins to fade, the real estate market is gearing up for spring. Whether you’re thinking about buying, selling, or simply keeping an eye on the market, this month’s newsletter is packed with key insights to help you navigate the latest trends, opportunities, and changes in our real estate landscape. From new listings and interest rate updates to expert advice, we’ve got everything you need to stay ahead.
March 2025 Real Estate Market Report: Calgary and Area
As we enter March 2025, our real estate market in Calgary and the surrounding areas is evolving, showing signs of a more balanced environment. While inventory continues to increase, sales activity remains strong.
Inventory Growth and Market Balance
Inventory levels have grown significantly year-over-year for the second consecutive month. While this increase is seen across all price ranges, the most notable rise has been in homes priced under $500,000, especially in the apartment and townhouse segments. The months of supply have reached 2.4, more than doubling from last year. These changes indicate a shift away from the seller’s market that dominated recent years, moving towards a more balanced market. However, certain property segments still favor sellers due to continued high demand.
Alan Tennant, President and CEO of CREB®, shared, “Even with more homes listed for sale, sales activity was lower than in February 2024. This marks a shift away from the strong seller’s market we’ve seen in recent years. As a result, the pace of price increases has slowed, which should be good news for buyers.”
Sales Activity and Pricing Trends
Sales in February remained above historical averages, though 19% lower than last year. This aligns with a market adjusting after a period of heightened activity. The benchmark price for Calgary real estate in February 2025 was $587,600, reflecting a modest 1% increase from the previous year. Detached homes saw the most significant increase, with a benchmark price of $760,500—up 5% from 2024.
Economic and Policy Influences on the Market
Several economic and policy factors are currently shaping the real estate landscape:
Immigration Policies: A recent 20% reduction in federal immigration targets for 2025 could impact housing demand. The market has benefited from immigration-driven demand, and any shifts may affect various property types.
Economic Growth: Investments in emerging sectors like alternative energy and artificial intelligence continue to drive Alberta’s economy, attracting new residents and supporting housing demand.
Lending Rates: Easing mortgage rates are encouraging buyers to enter the market, sustaining steady sales activity and helping to moderate price increases.
Tariffs & Economic Uncertainty: The recent implementation of tariffs under President Donald Trump has added economic uncertainty, especially in sectors like energy, construction, and manufacturing. This has created caution among investors and, in turn, a more cautious real estate market, with both buyers and sellers hesitating amid an unpredictable economy.
What to Expect in 2025
While the full impact of these tariffs is still unfolding, they are contributing to challenges in Alberta’s economy and real estate market. With a mix of economic uncertainty, policy changes, and shifting inventory levels, the real estate market is in flux. Buyers and sellers will have opportunities in this evolving market. Buyers may benefit from a wider selection of homes and slower price growth, while Sellers can still capitalize on strong demand, especially in desirable property segments.
As we move into the heart of spring, the real estate market in Calgary presents opportunities for both buyers and sellers. Whether you're ready to make a move or simply keeping tabs on the market, staying informed is crucial for making smart decisions. We hope this newsletter has given you valuable insights and helpful tips for the months ahead. If you have any questions or are ready to take the next step in your real estate journey, we’re here to help. Stay tuned for more updates, and here’s to a successful spring!
