Calgary’s real estate market has been on a rollercoaster ride, with frenzied bidding wars in the spring giving way to a much cooler landscape by the end of 2024.
New data from Wahi suggests that the market slowed significantly in the fourth quarter, with the vast majority of neighbourhoods experiencing underbidding rather than the heated competition seen earlier in the year.
A shift in buyer behaviour
According to Wahi’s analysis, only four of the 176 Calgary neighbourhoods where at least five homes sold in Q4 landed in overbidding territory—just 2 per cent of the market. Meanwhile, six neighbourhoods saw homes selling for their asking prices, while 94 per cent of neighbourhoods experienced underbidding.
“Homebuying competition in Calgary eased beyond the usual seasonal slowdown that’s expected towards the end of the year,” says Wahi CEO Benjy Katchen.
This cooling trend follows a sharp decline in overbidding that began in Q3, when the percentage of neighbourhoods in overbidding territory dropped to 10 per cent, down from 54 per cent at the peak of the market frenzy in Q2.
Declining prices and market adjustments
Alongside the drop in bidding wars, Calgary home prices dipped in Q4. The median price of a home fell from $575,000 in October to $555,000 in December, marking a 3 per cent decrease.
But underbidding doesn’t always mean buyers are getting a great deal. “The home could have been listed above what it was reasonably valued at,” Katchen explains. “In some cases, when underbidding activity increases, sellers need to adjust their expectations in terms of pricing.”
Still, while underbidding became more common, sale prices remained relatively close to list prices in Q3, with 69 per cent of neighbourhoods seeing overbids or underbids of no more than $5,000. By Q4, however, that number dropped to 17 per cent, suggesting buyers had more negotiating power.
What’s Next for Calgary Real Estate?
Early 2025 data suggests a rebound may already be underway. The median price of a Calgary home rose to $573,000 in January, reflecting a 9 per cent increase from $525,000 a year earlier and a 3 per cent increase from December’s $555,000.
“With so many unknowns, including the upcoming Canadian election as well as the threat of U.S. tariffs, we’ll continue to monitor the Calgary market to see how homebuyers respond,” says Katchen.