The Calgary real estate market has been riding a wave of change, shaped by three major economic forces: interest rates, housing inventory, and inflation. Whether you’re buying, selling, or just trying to time the market, understanding how these factors impact Calgary can help you make smart, confident decisions.

Let’s break down what’s happening — and what it means for you.

🔺 Interest Rates: Pressing the Brakes on Demand

The Bank of Canada’s rate hikes over the past two years have pushed mortgage rates to levels not seen in over a decade. While we’ve seen signs that the peak may be behind us, rates remain elevated compared to the ultra-low levels of the pandemic years.

For Calgary buyers, this means:

• Higher monthly mortgage payments

• Lower overall purchasing power

• More scrutiny from lenders

However, compared to other major Canadian cities like Toronto or Vancouver, Calgary remains relatively affordable, making it more resilient to rate pressure. Many buyers from out of province are still relocating here for that reason.

What it means for Calgary:
Demand has softened slightly due to rate hikes, but not drastically — particularly in the detached and townhouse segments. As rates begin to stabilize or decline in 2025, we could see pent-up demand return quickly.

🏠 Inventory: Calgary’s Tight Market Conditions

Calgary continues to face historically low inventory, especially in the entry-level and mid-range housing categories. According to the Calgary Real Estate Board (CREB), new listings have not kept pace with population growth and buyer demand, creating upward pressure on prices.

What’s causing the low supply?

• Many homeowners are staying put to keep their low-interest mortgages.

• Limited new construction in some segments.

• Rapid in-migration to Calgary, especially from other provinces.

As a result, homes are selling quickly, and in many cases, over asking price — particularly for well-located and well-maintained properties.

What it means for Calgary:
Low supply is keeping the market competitive and supporting price growth. Sellers remain in a strong position — but buyers need to act quickly and be well-prepared.

💸 Inflation: A National Issue with Local Impact

Canada’s inflation rate has cooled from its 2022 peak, but it’s still influencing everyday costs — from groceries to gas to construction materials. In response, the Bank of Canada has kept rates elevated to bring inflation back to its 2% target.

For Calgarians:

• Inflation is making everyday living more expensive.

• Higher interest rates are a direct result of inflation control.

• Real estate remains a hedge — homeownership protects against rising rents and long-term cost increases.

Despite broader economic pressures, Calgary’s strong labour market, energy sector growth, and interprovincial migration continue to fuel housing demand.

What it means for Calgary:
Inflation indirectly influences the market by driving rate policy, but Calgary’s affordability and economic stability are helping to offset the impact.

🧭 What This Means for Calgary Buyers and Sellers

For Buyers:

• Don’t wait for a perfect rate — focus on what you can afford today.

• Calgary is still a value market compared to the rest of Canada.

• Be pre-approved, act quickly, and work with an experienced agent.

For Sellers:

• It’s a great time to list — demand still outweighs supply.

• Well-priced and well-marketed homes are seeing multiple offers.

• Consider your next step — inventory is tight on both sides of the equation.

📍 Final Thoughts

The Calgary real estate market is uniquely positioned. While higher interest rates and inflation are cooling demand in many parts of Canada, Calgary remains a seller’s market due to its affordability, strong job market, and low inventory.

Whether you’re looking to buy, sell, or invest, staying informed — and working with a real estate professional who knows the Calgary market inside and out — can make all the difference.

📩 Curious about how these trends affect your neighbourhood or property? Contact us today for a local, personalized market update.