At the best of times, Calgary’s real estate market is a roller coaster and has reached new heights for the past three years. Record net interprovincial migration, increased immigration to Alberta, and a severe housing shortage have caused rents to rise dramatically, making becoming a landlord more attractive despite the increasing sale prices. If you are in the market for an investment property, we’ll give you an overview so you know what to expect at the end of 2024 and the beginning of 2025.
Calgary’s Real Estate Market Insights
The market has shown to be resilient even with the most adverse conditions we saw during the pandemic years, and the Bank of Canada’s latest move to cut interest rates down to 3.75% can start to stir things up or make buyers stand by the sidelines before coming back to the market. So, if you have sitting capital waiting for the opportunity to make your move, here’s a summary of Calgary’s market average prices over the past two years to put things into perspective:
| Year / Month | Detached | Row & Townhouses | Semi-Detached | Apartment |
| Nov. 2022 | $618,000 | $352,000 | $558,000 | $262,500 |
| Nov. 2023 | $699,400 | $426,300 | $626,800 | $310,100 |
| Nov. 2024 | $750,100 | $454,300 | $675,100 | $337,800 |
Source: CREB
Over this period, prices have been climbing up consistently, marking around a 10% increase from 2022. This increasing trend is more striking when compared to Edmonton, as in 2022, the median home price peaked at $417,465, 34.72% less than the average price for a detached home in Calgary.
The market performance in both cities has shown distinct trends over the past few years. Even with the two having considerable price increases, Calgary’s real estate market has surged more sharply due to high demand and a limited housing supply. In contrast, according to the latest data, Edmonton’s market has seen more moderate demand and a lower inventory (with an average price of $440,366 across all property types), helping it maintain steadier price growth over time.
The Situation of Other Major Markets
On the other hand, the Calgary market is still better than in other major cities, such as Toronto and Vancouver, even though both experienced slower growth compared to Calgary between 2022 and 2024. Let’s take a closer look at the numbers:
Toronto
| Year / Month | Average Price Across All Properties |
| 2022 | $1,070,000 |
| 2023 | $1,118,215 |
| Nov. 2024 | $1,452,518 |
Source: TRREB
Vancouver
| Year / Month | Average Price Across All Properties |
| April 2022 | $1,259,900 (All-time high) |
| 2023 | $1.17 million |
| Nov. 2024 | $1,276,716 |
Source: Wowa, Norada Real Estate
Calgary’s affordability relative to Toronto and Vancouver has made it increasingly attractive, especially given the city’s strong economic and job market trends, which keep attracting new Canadians or Canadians looking for better life opportunities.
However, as Calgary’s prices have increased, the market growth has slowed on the rental side. Rental increases that were in the $200-$300 range for existing tenants are now closer in line with inflation. There is an increasing number of available inventory on the rental market, caused largely by new buildings coming online, and with winter setting in, people are less likely to want to move unless they have to.
Is Now a Good Time to Buy an Investment Property?
While the rental market does not appear to be going down to pre-pandemic levels, a slight drop in the rental market is what we are seeing on the ground. This is not necessarily bad news for landlords, as many are seeing far higher rents now than they did years before. For new investors, the slight slowing of the sales market coupled with lower interest rates and still high rents makes now a perfect time to purchase an investment property.
As the Bank of Canada is expected to lower interest rates further, it may bring more individuals into the purchasing market and raise prices. However, we anticipate this heating up in early spring 2025. This makes now an optimal time to get into the market.
Other significant variables may affect the market as we enter 2025 and beyond, such as the recent approval of the city’s rezoning bylaw to alleviate the housing shortage crisis. Although its approval is raising concerns and controversy amongst Calgarians, the rezoning project is still in its early stages, and further bylaw amendments are possible. It’s important to remember this when considering entering the real estate market.
Invest With Knowledge
While it’s impossible to predict the market’s future behaviour with 100% accuracy, it’s important to know how to take advantage of the small opportunity windows the market offers if an investor’s current situation can handle the higher rates if that could translate into getting a good deal before prices soar again.
We hope that you find these insights useful in helping you buy your dream investment property. As a property management company that specializes in small landlords, you can find an ally in Amhurst to whom you can entrust your property. If you have any questions regarding this or any other property management topic, contact us.
