Navigating the National Slowdown: Why Calgary Remains a Beacon of Opportunity in Canada’s Real Estate Landscape

The recently released May 2025 housing market report, From Rebound to Retrenchment: Canada’s Housing Market Braces for a Prolonged Slowdown by Allwyn Dsouza, presents a sobering national outlook. After a brief rebound earlier this year, Canada’s housing market is once again facing headwinds—declining home sales, affordability challenges, tighter credit conditions, and shifting consumer sentiment.

While headlines may stir concern, it’s important to dig deeper. National trends don’t always translate directly to local markets—and Calgary stands out as a notable exception. For both home buyers and sellers in Calgary, understanding the broader economic context while keeping a local perspective is key to making confident real estate decisions.

Let’s take a closer look at the national trends, break down what they mean for Calgary, and explore why the city remains one of the most compelling real estate markets in Canada.

Canada’s Housing Market: From Cautious Rebound to Renewed Slowdown

According to the report, Canada’s housing market saw a modest rebound in early 2024 as expectations of interest rate cuts spurred some buyers back into the market. However, by Q2 2025, those expectations have been tempered. Rate cuts have been slow to materialize, and affordability remains stretched in many major markets such as Toronto, Vancouver, and Montreal.

The report highlights several key national factors contributing to the slowdown:

• Sales decline: April saw a 1.7% decline in national home sales—the fourth consecutive monthly drop.
• Affordability erosion: With interest rates still elevated, borrowing costs remain a key barrier, especially in already pricey markets.
• Supply building: New listings are on the rise, and active inventory is up 40% year-over-year, shifting market dynamics in favor of buyers.
• Weaker investor activity: Speculative demand is down, particularly in over-leveraged markets, further cooling overall demand.

The result is a national market that appears to be heading for a prolonged period of slower activity, particularly in the second half of 2025.

The Calgary Difference: Resilient, Affordable, and Growing

While national figures often dominate the conversation, real estate is inherently local—and Calgary continues to defy many of the broader Canadian trends.

Here’s why Calgary stands out:

1. Relative Affordability

Calgary remains one of the most affordable major cities in Canada. While markets like Vancouver and Toronto struggle with average home prices exceeding $1 million, Calgary’s average detached home price still sits well below that threshold. This affordability provides a strong foundation for market resilience, even as borrowing costs remain high.

In fact, for many interprovincial migrants and young families priced out of other markets, Calgary represents an attainable path to homeownership.

2. Positive Net Migration

Alberta continues to experience strong population growth, with Calgary absorbing much of that momentum. In 2024, Alberta led the country in interprovincial migration, and that trend is expected to continue throughout 2025. People are not only coming for affordability—they’re staying for opportunity.

With a strong job market, low taxes, and a vibrant economy, Calgary continues to attract new residents, which bolsters housing demand and supports long-term price stability.

3. Balanced Market Conditions

While much of Canada is shifting into buyer’s market territory, Calgary’s market remains more balanced. Inventory levels are rising here too, but not to the same extent as in other provinces. Days on market remain relatively stable, and well-priced homes—especially in desirable neighborhoods—continue to sell efficiently.

This balance means that both buyers and sellers have opportunities in today’s market, provided they work with a knowledgeable local expert and approach the process strategically.

Opportunities for Buyers: Strategic Entry in a Stabilizing Market

For home buyers in Calgary, the current environment offers a rare window of opportunity:

• More choice: Inventory is higher than it was during the frenzy of early 2022 or mid-2023, giving buyers more options and reducing pressure.
• Less competition: With fewer bidding wars and more days on market, buyers can take time to conduct thorough due diligence and negotiate terms that work in their favor.
• Negotiation power: In many price segments, especially outside the core luxury market, buyers are regaining leverage. Price reductions, seller incentives, and conditional offers are increasingly common.
• Rate flexibility: While interest rates remain elevated, many economists expect the Bank of Canada to begin easing in late 2025 or early 2026. Buyers willing to enter now can potentially refinance later when rates fall, capturing value in today’s prices.

The key for buyers is preparation. Mortgage pre-approval, clarity on needs and wants, and working with an experienced REALTOR® who understands Calgary’s micro-markets can help buyers make informed, confident decisions.

Advantages for Sellers: Realistic Pricing, Strong Local Demand

Despite national headlines warning of a cooldown, many Calgary sellers are still in a strong position—especially those who prepare well and price strategically.

Here’s why:

• Continued demand: Calgary’s population growth continues to outpace supply, especially in key family-friendly and commuter neighborhoods. Demand remains robust for detached homes and townhomes under $800,000.
• Well-prepared homes sell: With more inventory on the market, presentation matters. Homes that are staged, professionally marketed, and priced correctly are still selling quickly—and often close to asking price.
• Trade-up opportunities: For sellers looking to move into a larger home or a different neighborhood, today’s balanced market offers flexibility. You can sell in a stable market and buy in one too—without the intense pressure of a heated bidding war environment.

A successful sale in today’s market depends on smart strategy. That includes understanding buyer psychology, leveraging market data, and working with a REALTOR® who brings negotiation expertise to the table.

Looking Ahead: Cautious Optimism in a Shifting Landscape

The national market may be facing a reset, but Calgary continues to hold firm as a place of possibility. Whether you’re considering buying your first home, upgrading, downsizing, or investing, the key lies in understanding both the big picture and the local nuance.

As always, I’m here to help you navigate the market with confidence. With over 15 years of experience in Calgary real estate, I’ve seen the cycles, the challenges, and the opportunities—and I know how to position my clients for success in all market conditions.

Need Help Making Sense of Today’s Market?

Let’s connect. I’d be happy to walk you through what the current market means for your unique situation—whether you’re looking to buy, sell, or simply want to stay informed.