In a sign of cooling in Calgary’s red-hot real estate market, home prices have begun to dip in August 2025, coinciding with a surge in active listings that reached the highest level for the month since 2019. According to the Calgary Real Estate Board (CREB), the benchmark price for residential properties fell 1.2% month-over-month to $612,500, marking the first decline since early 2024 amid increased supply and persistent high interest rates. This shift comes after years of robust growth driven by interprovincial migration and low inventory, but experts warn that while the market is balancing out, affordability challenges persist for buyers in Alberta’s largest city.
Market Snapshot for August 2025
CREB’s latest report, released on September 3, 2025, reveals a market undergoing a noticeable correction. The total number of active listings climbed to 3,456, a 15.3% increase from August 2024 and the highest for any August since 2019, when supply was more abundant during a period of economic uncertainty tied to the oil downturn. This influx of properties—up 28% from July 2025—has given buyers more options, leading to longer days on market (now averaging 25 days, up from 18 in August 2024) and a slight softening in prices.
Sales activity also moderated, with 1,892 homes sold in August, down 2.1% from the previous year but still above long-term averages. The sales-to-new-listings ratio (SNLR) dropped to 52%, indicating a balanced market (between 40-60% is considered neutral), compared to the seller’s market conditions (above 60%) that dominated much of 2024. Detached homes saw the steepest price dip, with the benchmark falling 1.5% to $685,000, while attached properties and apartments experienced milder declines of 0.8% and 0.5%, respectively.
Ann-Marie Lamba, CREB’s chief economist, attributed the trends to a combination of factors: “The surge in inventory is a welcome relief for buyers, but it’s also a reflection of sellers adjusting to higher borrowing costs and economic uncertainty. We’re seeing more realistic pricing, which is leading to this price moderation.” Year-over-year, prices are still up 4.7% from August 2024, but the monthly dip signals a potential plateau as the Bank of Canada’s interest rate holds steady at 4.25% following its July decision.
Factors Driving the Inventory Surge and Price Dip
Several elements have contributed to this market pivot:
- Increased Seller Activity: With interest rates stabilizing after aggressive hikes in 2023-2024, more homeowners are listing properties, encouraged by Calgary’s strong job market in energy and tech sectors. Interprovincial migration from Ontario and British Columbia continues to bolster demand, but local sellers are capitalizing on accumulated equity from recent gains.
- Affordability Pressures: The benchmark price remains elevated, making homeownership challenging for first-time buyers. Average monthly mortgage payments for a typical home have risen 20% since 2022 due to higher rates, prompting some potential buyers to delay purchases and contributing to slower sales velocity.
- Seasonal and Economic Influences: August traditionally sees a uptick in listings as families prepare for back-to-school moves, but this year’s increase is amplified by broader economic resilience in Alberta. Oil prices hovering around $80 per barrel have supported confidence, yet global uncertainties, including U.S. trade policies under the Trump administration, are tempering aggressive bidding.
CREB data shows inventory levels are now 4.5 months of supply, up from 2.8 months in July, approaching the 6-month threshold that would indicate a buyer’s market. Neighborhoods like Quarry Park and Mahogany in the southeast have seen the sharpest inventory rises, with listings up 40% year-over-year, while core areas like Beltline remain competitive.
Implications for Buyers, Sellers, and Investors
For buyers, the rising inventory offers negotiation power and more choices, potentially leading to better deals on inspections and concessions. Real estate agent Sarah Thompson of RE/MAX Landan Real Estate told CBC News, “Clients are thrilled with the options—it’s the first time in years we’ve seen multiple offers below asking price.” However, with the fall market approaching, experts advise acting soon before potential rate cuts in late 2025 reignite competition.
Sellers, on the other hand, may need to adjust expectations. Overpriced listings are lingering longer, and staging or price reductions are becoming essential. Investors should note that rental demand remains strong, with vacancy rates at 1.2% in Calgary, but cap rates are compressing due to higher property values.
Looking ahead, forecasts from the Alberta Real Estate Association suggest prices could stabilize through Q4 2025, with modest growth of 2-3% in 2026 if rates ease. Lamba cautioned, “While the dip is concerning for sellers, it’s a healthy correction that could prevent a sharper downturn. Calgary’s fundamentals—population growth and economic diversification—remain solid.”
This August’s data provides a snapshot of a market in transition, offering hope for affordability while reminding stakeholders of the cyclical nature of real estate. As inventory continues to build, Calgary buyers may finally catch a break in one of Canada’s most dynamic housing markets.
Sources: Calgary Real Estate Board (CREB), CBC News, Global News, RE/MAX Canada Reports