Calgary condo prices plunge 8% as housing market slowdown deepens

Calgary's housing market is showing further signs of weakness as falling condominium prices and increased competition among sellers reshape a market that experienced rapid growth in recent years. According to the Calgary Real Estate Board's September 2026 report, the city's residential benchmark price fell to $566,700, nearly one per cent below the same month last year. Calgary recorded 1,650 residential sales during September, down approximately four per cent year over year, while the supply of available homes remained at nearly four months. The sharpest price declines are occurring in higher-density housing, with the apartment condominium benchmark falling to $291,400, more than eight per cent below September 2025. Row-home prices declined nearly six per cent to $412,400, reflecting growing competition from newly constructed homes and a greater selection of resale properties.

The slowdown is not affecting every part of Calgary's housing market equally. Detached home sales actually increased more than four per cent compared with September 2025, reaching 896 transactions, while benchmark prices declined only about one per cent. The Calgary Real Estate Board attributes the divergence largely to the construction boom of the past three years, which added significantly more apartments and townhouses than detached homes. That surge in higher-density construction, combined with additional rental options, has given prospective buyers considerably more choice. Apartment condominiums now have more than five months of supply, compared with just over three months for detached homes, creating conditions that increasingly favour buyers in the condominium sector. The differences are also geographical, with some neighbourhoods experiencing substantially greater inventory pressures than others.

The changing market presents both opportunities and risks for Calgary's economy. First-time buyers who were previously priced out of ownership may find more affordable options, particularly in the condominium and townhouse markets, while existing homeowners and investors face declining property values and longer selling periods. Developers must also navigate competition from recently completed projects, potentially influencing decisions about future construction. The shift arrives as Alberta's government intervenes in municipal housing-density policies and Calgary continues debating how to accommodate population growth while managing infrastructure costs. Despite the weakness in some segments, Calgary's relatively stable detached market and continued employment growth suggest a market correction concentrated in higher-density housing rather than a citywide housing collapse. The question heading into 2027 is whether additional supply and weaker demand will continue pushing prices lower or whether improved affordability will eventually attract enough buyers to stabilize the market.