Supply Levels Improve in January

Calgary, Alberta – February 3, 2025 – After three consecutive years of limited housing supply, January saw a notable improvement in inventory levels, rising to 3,639 units. This 70% year-over-year increase is substantial, yet inventory remains below the typical January average of over 4,000 units. The most significant gains were seen in apartment-style condominiums.

“Supply levels are expected to improve this year, contributing to more balanced conditions and slower price growth,” said Ann-Marie Lurie, Chief Economist at CREB®. “However, the adjustment in supply is not equal across all property types. Detached, semi-detached, and row properties continue to experience tight conditions, while apartment condominiums are seeing excess supply in higher-priced segments.”

Despite the increase, citywide months of supply reached only 2.5 months in January—an improvement from last year’s single-month supply but still low for the winter season. Semi-detached properties saw the lowest months of supply at under two months, whereas apartment-style units had the highest at 3.5 months.

The increase in supply was driven by new listings, which rose to 2,896 units, compared to 1,451 sales. January sales were down 12% from last year but remained nearly 30% higher than the typical January average.

The total residential benchmark price for January stood at $583,000, a stable figure compared to the end of 2024 and nearly 3% higher than last January. Price growth varied across city districts and property types.

January 2025 Housing Market Breakdown

Detached Homes

New listings for detached homes reached 1,228 units in January, up 29% year-over-year, driven largely by homes priced above $600,000. Sales activity declined to 674 units, bringing levels in line with long-term trends. While inventory gains improved conditions, available stock (1,448 units) remains 27% below historical January averages, keeping the months of supply at just over two months.

Market conditions varied across districts, with the City Centre and North East districts experiencing more balanced conditions. The unadjusted benchmark price rose to $750,800, a slight monthly increase and 7% higher than January 2024. Seasonally adjusted prices have remained stable since mid-2024.

Semi-Detached Homes

Increased new listings helped bolster inventory levels in this sector. Sales in January outpaced last year’s levels, maintaining a months-of-supply ratio just below two months. However, supply conditions varied, with the City Centre, North East, and West districts reporting three or more months of supply, while other districts remained below two months.

The unadjusted benchmark price stood at $673,600, slightly lower than December but over 8% higher than January 2024. Districts with higher months of supply experienced modest price declines, while North, North West, South, South East, and East districts saw stable to moderate price gains.

Row Homes

In 2024, row home sales reached 4,647 units—a 2% increase from 2023—marking the second-highest total on record. New listings rose by 18%, primarily in homes priced above $400,000, leading to improved inventory levels.

Supply improvements eased price pressure towards the end of 2024, though annual benchmark prices still rose 14%. Price increases were citywide, ranging from 12% in the City Centre to over 20% in the most affordable areas of the North East and East districts.

Apartment Condominiums

January saw a surge in new listings compared to sales, causing inventory to rise to 589 units—more than double the near-record lows of January 2024. This brought inventory levelsels closer to long-term trends and improved the months of supply to over two months, a trend seen since mid-2024.

Rising supply eased price pressures, but price movements varied by district. The citywide unadjusted benchmark price stood at $444,900, down slightly from December but nearly 5% higher than last year. The North East district saw the most significant monthly price adjustment.

Regional Market Overview

Airdrie

Sales in January remained consistent with last year’s high levels, while new listings increased, boosting inventory levels. The months of supply remained above two months for the fifth consecutive month, a significant improvement from the sub-two-month levels seen since 2021. The unadjusted benchmark price declined slightly from December to $537,300 but remained nearly 4% higher than January 2024.

Cochrane

Cochrane experienced an increase in new listings and inventory, with 104 new listings compared to 71 sales, pushing total inventory to 156 units. While inventory is higher than in the past three years, it remains below long-term January averages. For the fifth consecutive month, Cochrane’s months of supply remained above two months, reducing price pressures. The unadjusted benchmark price was $565,900, a slight monthly decline but nearly 5% higher than January 2024.

Okotoks

Unlike Airdrie and Cochrane, new listings in Okotoks remained relatively low compared to last year. While lower sales supported some inventory growth, available stock (68 units) is still half of pre-pandemic January levels. Limited supply has driven price growth since 2021, with January’s unadjusted benchmark price rising to $614,900, up slightly from December and nearly 5% higher than January 2024.

For full City of Calgary and regional statistics, visit the official CREB website.

But how do you spot a great investment property in Calgary?

This guide will help you navigate the Calgary housing market. It will provide you with actionable insights and tips.

You'll learn about the factors that contribute to a property's potential for appreciation. You'll also understand how to make informed decisions when buying a house in Calgary.

Whether you're a novice investor or an experienced one, this guide is for you.

Let's dive in and explore the world of real estate investment in Calgary.

Understanding the Calgary Housing Market

The Calgary housing market has shown resilience in recent years. Factors such as economic recovery and population growth support its stability. This creates a healthy environment for real estate investment.

Several economic indicators have noteworthy implications for investors. Unemployment rates, GDP growth, and interest rates can affect property values. A strong economy often correlates with rising property prices.

Comparatively, Calgary presents unique opportunities among major Canadian cities. While cities like Toronto and Vancouver experience skyrocketing prices, Calgary offers more affordable options. This makes it an attractive alternative for investors seeking value.

Calgary also benefits from a diverse economy. Key sectors such as energy, technology, and finance drive this diversity. This balance reduces vulnerability to economic fluctuations.

Understanding these market conditions is crucial for potential investors. It aids in predicting property performance and identifying growth areas. Consider these factors when evaluating Calgary as a real estate investment destination.

The Appeal of Calgary for Real Estate Investment

Calgary is increasingly popular among real estate investors. One key factor is its robust economic environment. This creates a fertile ground for property investment opportunities.

The city benefits from a well-diversified economy. Sectors like energy, technology, and health care play significant roles. This diversification shields the market from drastic downturns.

Population growth in Calgary further fuels housing demand. An influx of new residents boosts the need for homes. This trend increases rental potential and property appreciation over time.

Investors appreciate Calgary's long-term growth prospects. A stable market with rising demand presents promising opportunities. Real estate here can be a solid investment choice for those looking to expand their portfolios.

Prime Locations: Where to Invest in Calgary

Choosing the right neighborhood is crucial for investment success. Some areas in Calgary offer higher potential than others. It's important to know which locations to consider.

Inglewood and Bridgeland stand out for their growth potential. Both are near downtown, attracting young professionals. Proximity to amenities boosts their desirability.

Kensington and Beltline are prime choices for investors. They offer vibrant lifestyles and cultural attractions. Tenants are drawn to their urban appeal.

Northwest communities like Tuscany are also attractive. These areas offer a family-friendly environment. Access to schools and parks enhances their value.

Here's a list of key neighborhoods with high investment potential:

• Inglewood

• Bridgeland

• Kensington

• Beltline

• Tuscany

Location and accessibility are vital in property investment. Homes near public transit and highways attract renters and buyers. A convenient commute impacts property appeal significantly.

Future development plans also influence property values. New projects can transform neighborhoods. Investors should stay informed about upcoming developments.

Calgary plans to expand its public transportation network. This may enhance connectivity across the city. Smart investors consider these developments when choosing properties.

Investing in emerging neighborhoods can be a strategic move. Areas with future growth promise offer strong returns. Savvy investors capitalize on these opportunities early.

Understanding neighborhood dynamics is key to investment success. Choose locations with promising futures and good accessibility. This approach ensures potential gains in the real estate market.

Property Types and Their Investment Potential

Understanding property types is vital for potential investors. Each property type has its own advantages and challenges. Making informed choices leads to better returns.

Single-family homes are popular with long-term investors. They offer stability and ease of management. However, their prices can be higher, impacting initial costs.

Condos are attractive for their lower entry costs. They appeal to young professionals and first-time renters. Yet, condo fees can affect profitability and should be accounted for.

Townhouses provide a balance between single-family homes and condos. They often come with shared amenities and lower maintenance demands. This makes them appealing for both investors and tenants alike.

Current rental market trends also impact property choices. Single-family homes continue to see strong demand from families. Meanwhile, condos are favored by urban professionals seeking convenience. As such, aligning property purchases with market needs enhances investment success.

Financial Considerations for Investment Properties

Financial planning is a cornerstone of real estate investment success. Calculating return on investment (ROI) is a critical first step. This helps ensure the property will deliver the desired financial benefits.

Cash flow projections provide insights into monthly income and expenses. These projections help investors understand potential monthly profits. Accurate calculations aid in making informed purchasing decisions.

Property taxes, utility costs, and management fees affect net income. Being aware of these expenses is crucial. Unanticipated costs can eat into profits and affect investment viability.

Financing options vary, affecting overall investment strategy. Traditional mortgages offer stability, but creative financing might suit some investors better. Interest rates will have a significant impact on affordability and profitability.

Investors must stay informed about current interest rates. These rates influence mortgage payments and overall cost. A slight increase can have a large impact on monthly budgets.

Here's a quick checklist for financial considerations:

• Calculate ROI to determine profitability.

• Project cash flow for clear financial insights.

• Analyze property taxes, utilities, and management fees.

• Research financing options and current interest rates.

Understanding these factors can significantly influence investment outcomes. With solid financial analysis, investors can make strategic decisions. Ultimately, this leads to better positioning within the Calgary housing market.

Legal and Regulatory Aspects of Investing in Calgary

Navigating the legal landscape is vital for real estate investors. Landlord regulations and tenant rights govern leasing and property management practices. Being informed about these laws helps avoid potential disputes and fines.

Understanding zoning laws is equally important. These laws dictate how land can be used, affecting property potential. Investors should stay aware of any zoning changes that could impact property usage or value.

Local regulations can change, influencing real estate investments. Keeping up-to-date is crucial for compliance and strategic planning. Knowledge of legal requirements ensures smoother operations and can safeguard your investment in Calgary.

Adding Value to Your Investment Property

Enhancing a property's value can significantly boost returns. Renovation strategies play a crucial role in this process. Focus on kitchen and bathroom upgrades, as they often offer the highest return on investment.

Upgrading to energy-efficient features is another effective method. Energy-efficient windows and appliances attract eco-conscious tenants, reducing utility costs. Sustainable properties can command higher rental rates and appeal to a growing demographic of renters.

Consider curb appeal when planning renovations. Exterior improvements, like landscaping or a fresh coat of paint, enhance first impressions. A well-maintained property can stand out in the competitive Calgary housing market.

Sustainability is not just a trend; it’s a wise investment. Solar panels and eco-friendly materials contribute to long-term savings. They can also increase property value, aligning with Calgary's focus on greener living.

Effective Property Management and Tenant Relations

Managing your property well is key to maximizing returns. Regular maintenance and prompt repairs keep tenants satisfied and protect your investment. It's also essential to address issues quickly to prevent costly damage.

Screening tenants thoroughly helps ensure reliable rental income. Conduct background and credit checks and verify references. This process reduces risks and helps find tenants who pay rent on time and respect property.

Setting appropriate rental rates requires understanding the local market. Research similar properties and adjust prices based on amenities and location. A fair rate attracts quality tenants and keeps your property competitive.

Risks and How to Mitigate Them

Investing in real estate carries inherent risks. Market fluctuations and unexpected expenses can impact your returns. It's crucial to identify these potential pitfalls early.

Insurance plays a vital role in protecting your investment. Coverage for property damage or liability can prevent significant financial losses. Evaluate different policies to ensure adequate protection.

Contingency funds are essential for managing unexpected costs. Set aside money for repairs, vacancies, or emergencies. This financial cushion helps maintain stability even during challenging times.

Leveraging Market Data and Professional Networks

Market data is a powerful tool for investors. Analytics can reveal patterns and trends, highlighting potential opportunities. Use these insights to make informed decisions.

Real estate agents bring invaluable local knowledge. They understand market nuances and can identify promising properties. Collaborating with a seasoned agent enhances your investment strategy.

Lawyers ensure your transactions are legally sound. They help navigate complex legal documents and regulations. Their expertise is crucial for protecting your interests.

Accountants provide financial clarity. They assist with budgeting, taxes, and cash flow management. Their guidance can optimize your investment's profitability.

Engaging with these professionals creates a robust support network. This network is essential for successful real estate investment in Calgary.

Building a Successful Investment Strategy

Long-term planning is critical in real estate investment. An enduring strategy allows for sustained growth and profitability. Patience can lead to significant returns.

Adaptability is equally vital. The real estate market is dynamic, with many external factors. Being flexible helps you respond swiftly to unexpected changes.

Staying informed is crucial for success. Regularly monitor the Calgary housing market and economic indicators. This vigilance enables you to make timely, informed decisions.

Responsive investors can capitalize on emerging opportunities. They adjust strategies based on the latest market trends. This approach maximizes potential returns and minimizes risks.