Calgary's housing crisis has taken a shocking turn as the condo market faces an alarming contraction, with prices plummeting by 30% as reported by the Calgary Real Estate Board (CREB). This dramatic shift comes as a wave of new housing supply saturates the market, leaving first-time buyers like Tony Wang with mixed feelings of relief and concern.
Condo Sales Plummet Amid Rising Inventory
According to data compiled by Wahi, a digital real estate platform, a staggering 96% of condos sold in the first quarter of 2025 did so below asking price. This marks a significant shift from the previous year, when over 60% of condos were selling at or above their listing prices. The influx of new construction has led to a surplus of available units, with inventory exceeding 2,000 units for the first time in years.
First-time Buyers Find Some Relief
For people like Tony Wang, who finally secured a loft-style condo in the East Village after four years of searching, this could be seen as a moment of victory. Wang's successful offer was $15,000 below the listing price, a rare win in a market previously dominated by bidding wars. However, this relief comes at a cost; the overall market volatility has left many wondering if this is simply a temporary reprieve or a precursor to deeper economic issues.
Recent real estate transactions in Northeast Florida
Investor Exodus and Rental Market Dynamics
Experts like Rebecca Chamberlain from Chamberlain Real Estate Group suggest that out-of-province investors are retreating from the Calgary market, contributing to the dramatic increase in condo listings. Vacancy rates are on the rise, forcing landlords to lower asking rents, which are now only slightly higher than those for newly constructed purpose-built rental units. This shift has made the secondary rental market less attractive, pushing investors to reconsider their strategies.
Growing Supply and Stagnant Prices
The Calgary market has seen a record 38,000 dwellings completed since 2023, with 23,000 more currently under construction, as reported by the Canada Mortgage and Housing Corporation (CMHC). Despite the growing number of housing options, prices remain stubbornly high, with the benchmark condo price still $88,300 above where it was in 2022. Ann-Marie Lurie, chief economist at CREB, emphasizes that while there is pressure on prices, the substantial gains seen over the last two years are not being fully offset.
Breaking down October 2024 statistics from the Calgary Real Estate Board
Housing Affordability Crisis Persists
The City of Calgary estimates a shocking 42,000 new dwellings are needed this year alone to meet the demand. The CMHC report indicates that to truly restore affordability to levels seen in 2019, housing starts need to increase by nearly 60% annually over the next decade. Without this drastic measure, many potential buyers will continue to be sidelined, waiting for prices to drop further before making a decision.
