Why Calgary Home Prices Are Falling: The Hidden Impact of Higher Density Homes – August 2025 Market Update

Are you wondering why Calgary's real estate market feels different lately? Prices are dipping, but not everywhere – and the reasons might surprise you. In this August 2025 update, we'll dive into the data revealing how increased supply in apartments and row homes is driving the biggest shifts. If you're a buyer, seller, or investor in Calgary, Cochrane, or surrounding areas, stick around to uncover the trends that could impact your next move.

Understanding the Calgary Real Estate Market Shift

Calgary's housing market is evolving, with improved supply choices reshaping dynamics and leading to price declines over recent months. The unadjusted total residential benchmark price hit $577,200 in August – a drop from last month and nearly 4% lower than the same time last year.

But here's the key insight: These adjustments aren't uniform. Higher-density properties like apartments and row homes are seeing the steepest declines, while detached and semi-detached homes experience more modest changes. As Ann-Marie Lurie, Chief Economist at CREB®, explains: “Perspective is needed when it comes to price adjustments. The most significant price adjustments are occurring for row and apartment style homes as they are also the product type that are facing the largest gains in supply choice. Meanwhile price adjustments in the detached and semi-detached markets range from modest price growth in some areas to larger price declines in areas with large supply growth. Overall, recent price adjustments have not offset all the gains that have occurred over the past several years.”

Sales totaled 1,989 in August, down 9% from last year, though still above long-term averages due to solid demand. What's changed? Supply. New listings are up, pushing inventory to 6,661 units – the highest August level since 2019. This has lifted months of supply to 3.4, creating a more balanced market compared to the seller's frenzy of recent years. However, variations by property type, price, and location mean opportunities abound – if you know where to look.

Detached Homes: Balancing Act with Regional Variations

Detached properties remain a cornerstone of Calgary's market, but easing sales (995 units in August) and rising new listings (1,748) have kept the sales-to-new-listings ratio below 60%. Inventory climbed to 3,051 units, the highest since 2020, fostering balance.

The benchmark price? $755,600 – down about 1% from last month and last year. Yet, location matters: Prices fell 5% in the North East and East districts amid buyer's market conditions, while the City Centre saw over 2% growth. Year-to-date, Calgary's detached prices are still up 2% from 2024, hinting at resilience despite the dips.

Semi-Detached Homes: Holding Steady Amid Gains

Sales for semi-detached homes ticked up in August compared to last year, but year-to-date figures show an 8% decline to 1,557 units – still above historical norms. New listings slowed, boosting the sales-to-new-listings ratio to 67% and capping inventory growth. With months of supply under three, this segment avoids the heavier adjustments seen elsewhere.

Benchmark price: $687,200 – lower than last month but 1% higher than August 2024, and up nearly 4% year-to-date. Growth shines in the City Centre, while declines hit the North East, East, and North districts hardest.

Row Homes: Supply Surge Weighs on Prices

Row home sales slowed in August, contributing to a 16% year-to-date drop. New listings, though down slightly this month, have trended up overall, inflating inventory to 1,103 units – near record highs. Months of supply edged above three, a far cry from last year's tightness.

The result? Prices at $439,600, marking the fourth straight monthly decline and a 5% drop from last August. Districts like North East, North, South, and East saw over 5% falls, driven by resale oversupply and new home competition.

Apartment Condominiums: The Epicenter of Change

Apartment sales continue to lag, with a 30% year-to-date pullback despite beating long-term trends. August's 877 new listings dwarfed 449 sales, yielding a 51% sales-to-new-listings ratio and record-high inventory of 1,979 units. Months of supply hover around four since June.

Benchmark price: $326,500 – the fifth consecutive monthly drop, down 6% from last year. City Centre and West districts saw 5% and 3% declines, respectively, with North East plunging over 11%.

Regional Insights: Airdrie, Cochrane, and Okotoks

Beyond Calgary, surrounding areas show mixed signals:

• Airdrie: Year-to-date sales down 12% to 1,248. Inventory at 535 units supports balanced conditions, but prices fell to $531,100 – 4% below last August amid broader supply options.
• Cochrane: Sales pulled back, with a 50% sales-to-new-listings ratio pushing months of supply over four. Prices stable at $589,100, up 2% from last year and 4% year-to-date.
• Okotoks: New listings dipped, lifting the ratio to 80%. Inventory rose 29% to 116 units but remains below norms. Year-to-date prices up 2%, with gains across types despite monthly softness.

These trends underscore how supply dynamics are reshaping affordability and choices across the region.

What Does This Mean for You in Calgary's Housing Market?

Calgary's real estate landscape is shifting toward balance, offering buyers more leverage – especially in higher-density segments – while sellers in premium areas hold ground. But with variations by type and location, timing your move could make all the difference.

Ready to navigate these changes? Whether you're eyeing a detached home in the City Centre or an apartment bargain in the North East, expert guidance is key. Contact Adam Vetter today for a FREE home evaluation and personalized insights tailored to your goals. Call or text (403)-872-4392 to get started – don't miss out on the opportunities in this evolving market!

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