Sabrina's Blog

If you have been following the Calgary real estate market, you may have heard the phrase “three months of inventory” recently. But what does that actually mean?
Is three months of inventory good for buyers? Is it bad for sellers? Does it mean Calgary home prices are going down?

Not necessarily.

Months of inventory is one of the numbers I pay close attention to when looking at the Calgary real estate market because it gives us a better idea of the balance between homes available for sale and the number of homes buyers are purchasing.
And while it is a useful number, it needs some context.

What does “months of inventory” mean in real estate?

Months of inventory, sometimes called months of supply, is an estimate of how long it would take to sell all the homes currently available on the market if no new homes were added and homes continued selling at the current pace.
For example, imagine there are 900 homes available for sale and approximately 300 homes are selling each month. That would represent about three months of inventory.
It does not mean that every home will take three months to sell. Some homes may sell in a few days, while others may sit on the market for months.

It is simply a way of measuring the relationship between supply and demand.

Why does months of inventory matter?

Think of it this way: if there are very few homes available and lots of buyers looking, sellers generally have more leverage. When there are many homes available and fewer buyers competing for them, buyers generally have more choice and negotiating power.

That makes months of inventory helpful because it tells us more than simply looking at how many homes sold last month. A market with 1,000 sales might sound very busy. But if there were also a large number of homes available for buyers to choose from, the market could still be relatively balanced. This is why I like to look at supply and demand together, rather than relying on one statistic.

Does three months of inventory mean Calgary is a balanced market?

Three months of inventory is often considered to be around a relatively balanced level of supply, but there isn't one magic number that defines a balanced market for every situation. Real estate markets can behave differently depending on the property type, price range and location.

Three months of inventory for one segment of Calgary may feel very different from three months in another.

For example, the Calgary apartment market has been carrying more inventory than some other property types. Meanwhile, certain detached homes and price ranges can still have considerably tighter supply. This is an important point for both buyers and sellers:
Calgary is not one single real estate market.

What does three months of inventory mean for Calgary home sellers?

If you are selling your Calgary home, three months of inventory generally means you need to pay attention to your competition. Buyers may have more choices than they would in a very tight seller's market. That means your home needs to be priced appropriately and presented well. This becomes especially important if there are several similar homes for sale in your neighbourhood.

Buyers can compare.

They can look at the home down the street, the one around the corner and the one that was just listed yesterday. If your home is priced too high compared with the competition, they may simply move on to another property.

Price matters more when buyers have choices

One of the biggest mistakes I see sellers make is thinking they can start high and simply reduce the price later if they don't get an offer. Sometimes that works. Often, it costs you time and attention.

When a home first comes on the market, it has the greatest opportunity to attract buyers and agents watching new listings. If the price is too high, you may miss that initial group of potential buyers. Then you can end up with:

Higher price → fewer showings → little or no buyer interest → more time on market → price reduction.

The goal isn't necessarily to be the cheapest home on the market. The goal is to be well-positioned against the competition. That includes price, condition, photography, staging, presentation and how easy the home is for buyers to view.

Does three months of inventory mean sellers should panic?

No.

A market with more inventory does not mean good homes aren't selling.
A well-priced home in a desirable location can still attract strong interest and sell quickly.

The important thing is to understand where your particular property fits within the market. For example, I would want to look at:

• What similar homes are currently listed?

• How many have sold recently?

• What price range are they selling in?

• How much competition is there?

• How long are comparable homes taking to sell?

• Are buyers negotiating or competing?

• Is inventory increasing or decreasing?

This gives us a much more useful picture than simply saying, “Calgary has three months of inventory.”

What does three months of inventory mean for Calgary home buyers?

For buyers, more inventory can be a good thing. It can mean more homes to choose from and potentially more negotiating room. You may have more time to compare properties instead of feeling like you have to make an immediate decision because another buyer is waiting around the corner. Depending on the property and seller, you may also have more opportunity to negotiate on price or other terms.
But there is an important catch:

More inventory does not mean every home is a bargain.

A desirable home that is correctly priced can still attract multiple buyers, even when the overall market has more supply. This is why buyers should not automatically assume they can offer substantially below asking price simply because inventory has increased.

The individual property still matters.

Does three months of inventory mean Calgary home prices are going down?

Not necessarily. Inventory can put pressure on prices when supply increases faster than demand, but months of inventory by itself does not tell us exactly what home prices will do next.

To understand the direction of the market, I want to look at several pieces of information together, including:

• Sales

• New listings

• Inventory

• Sales-to-new-listings ratio

• Benchmark prices

• Months of supply

• Property type

• Price range

• Individual neighbourhood trends

For example, if new listings are coming onto the market faster than homes are selling, inventory can build. If sales are strong compared with the number of new listings, inventory can tighten.

That changing balance between supply and demand is what can ultimately influence pricing and negotiating conditions.

Why I don't rely on days on market alone

You will often hear people talk about how many days the average Calgary home is taking to sell. Days on market can certainly be useful, but I don't think it should be looked at in isolation. One reason is that a property can be cancelled and relisted, which can affect how the market time appears. Months of inventory gives us a different perspective because it looks at the relationship between available supply and the rate at which homes are selling. When I'm helping a seller determine a price, I want to know more than how long the average home has been sitting on the market.

I want to know how much competition they have and how quickly comparable properties are actually selling.

So, is three months of inventory good or bad?

The answer depends on whether you're buying or selling and what type of property you're talking about.
For buyers: more inventory can mean more choice, more time to compare homes and potentially more negotiating power.
For sellers: more inventory can mean more competition, making accurate pricing and strong presentation especially important.
For both: the Calgary-wide number doesn't tell the entire story.

Your neighbourhood, property type, price range and the condition of the home can all make a significant difference.

The bottom line

Three months of inventory isn't a reason for buyers to panic or sellers to panic. It is simply another piece of information that helps us understand the Calgary real estate market. The bigger question is:

What does the current level of inventory mean for your particular home or the type of home you want to buy?

That's where the numbers become much more useful. Real estate isn't one-size-fits-all. Two homes in the same city can have completely different results depending on their location, price, condition and competition. That's why when I'm advising a buyer or seller, I don't just look at the Calgary headline numbers. I look at what is happening with that particular property, price range and neighbourhood.

The more you understand the numbers, the better decisions you can make.

Calgary Real Estate Inventory FAQs

What does three months of inventory mean in Calgary real estate?

Three months of inventory means that, based on the current rate of sales, it would theoretically take about three months to sell the homes currently available if no new listings were added.

Is three months of inventory good for Calgary buyers?

It can be. More inventory generally gives buyers more choice and can provide additional negotiating opportunities, although desirable homes that are priced correctly can still be competitive.

Is three months of inventory good for Calgary sellers?

It can still be a healthy market for sellers, but sellers may face more competition than they would in a very low-inventory market. Accurate pricing and good presentation become especially important.

Does three months of inventory mean Calgary home prices will fall?

Not necessarily. Inventory is one factor affecting the market. Sales, new listings, property type, price range and local conditions also need to be considered when evaluating Calgary home prices.

Is months of inventory the same as days on market?

No. Months of inventory measures the relationship between available homes and the pace of sales. Days on market measures how long properties are taking to sell. Both can provide useful information, but they tell us different things.

If you own a home in Calgary, you may have heard a lot about the City's zoning changes in 2026. You may have heard that Calgary repealed blanket rezoning, that properties changed back from R-CG, and that basement suites are now a permitted use.
But what does all of this actually mean if you own a home or are thinking about buying one?

Here is the simple version.

What happened to R-CG zoning in Calgary?

In 2024, Calgary changed the zoning on many residential properties across the city. Many lots that had traditionally been zoned for lower density housing were changed to R-CG, or Residential Grade-Oriented Infill.
In simple terms, R-CG allowed more types of housing to be considered on a lot. Depending on the property and the rules that applied, this could include single detached homes, semi-detached homes, rowhouses and townhouses.
This is why R-CG became such a big topic for homeowners and buyers. A property that had previously been limited to a single detached home could potentially have had more redevelopment options under the new zoning.

Then, in August 2026, Calgary reversed most of that citywide rezoning. The zoning on approximately 99 percent of the affected properties went back to what it was before the 2024 rezoning, subject to certain exceptions for properties with qualifying applications, approvals or other circumstances.

So does going back from R-CG mean you can never build a townhouse or rowhouse on that property? No.

It means that if your property is no longer R-CG and the current zoning does not allow the type of development you want, you may need to apply to have the property rezoned. That is a separate process and approval is not automatic.

This is why checking the current zoning of a property is so important. A property that was R-CG in 2024 or earlier this year may not be R-CG today. And that can make a big difference if you are buying a property because of its redevelopment potential.
CHECK YOUR CURRENT ZONING HERE

What changed with Calgary basement suites in 2026?

This is a separate change, and it is one that may affect a lot more homeowners. On August 5, 2026, Bylaw 26P2026 came into effect. It changed secondary suites from a discretionary use to a permitted use in Calgary's low density residential districts.

But what does “permitted use” actually mean?
It does NOT mean you can simply finish your basement, put in a kitchen and rent it out without permits.
It means that a secondary suite is now an allowed use under the zoning rules, provided the property qualifies and the suite meets the City's requirements.

Think of it this way: the zoning question becomes much simpler, but the safety and building requirements still apply.

You still need the appropriate permits to create a legal secondary suite. The City requires a building permit, and electrical and plumbing permits may also be required depending on the work being done. In some situations, a development permit is also required.

So if you are asking, “Can I build a basement suite in Calgary now without a permit?” the answer is no.
You still need to follow the City's rules and obtain the required permits.
A legal secondary suite also needs to meet specific requirements. For example, it must be a self-contained living space with its own cooking and bathroom facilities, bedrooms need proper egress windows, and the suite needs an entrance that can be accessed from outside the main dwelling.

What if my basement suite already exists?

This is an important one for buyers and sellers.
A basement with a separate entrance is not automatically a legal secondary suite.

If a basement has been developed with a kitchen and bathroom and is being used as a separate living space, but the required permits were never obtained, the suite may not be legal or registered with the City. The City has a process for legalizing existing secondary suites, and its Secondary Suite Registry can be used to verify whether a suite has the necessary permits and inspections.

If you are buying a home because you want rental income from the basement, I would always recommend checking this before assuming the suite is legal.

Can I have both a basement suite and a backyard suite?

This is another area where the rules have changed.
Under the current rules, a secondary suite and a backyard suite generally cannot be located on the same property.

So you cannot simply assume that a property can have a legal basement suite plus a backyard suite because of the zoning changes from 2024.

What does this mean if you are buying or selling a Calgary home?

For buyers, there are really two different questions to ask.

If you are looking for redevelopment potential, check the property's current zoning. Do not rely on an old listing or assume that because a property was R-CG in 2024, it is still R-CG today.

If you are looking for rental income, check whether the home has a legal secondary suite and whether the suite is registered with the City. A separate basement entrance alone does not make it a legal suite.

For sellers, it is also important to be careful about how you advertise your property. If you are promoting a home as having “R-CG redevelopment potential” or a “legal basement suite,” make sure those statements are accurate under the current rules.

The bottom line

The August 2026 zoning changes made two important things happen.

First, Calgary reversed most of the citywide R-CG rezoning from 2024, meaning many properties went back to their previous zoning. This changed the redevelopment options available on those properties.

Second, Calgary made secondary suites a permitted use in applicable low density residential districts. This makes it easier and more predictable to pursue a basement suite where the property qualifies, but it does not eliminate the need for permits or safety inspections.

If you are buying a Calgary home for its basement suite or redevelopment potential, the current zoning and permit history matter. What was allowed on a property two years ago may not be the same as what is allowed today.

Questions? Let’s have a chat - Sabrina @ 4036202048

by the Calgary Real Estate Board

Sales and New Listings
Slow In August

Calgary, Alberta, September 1, 2026 – Consistent with trends throughout most of 2026, both sales activity and the number of new listings coming onto the market have continued to trend down compared with 2025 levels. In August, sales in Calgary were 1,660 units, down 16 per cent compared with last year, while new listings fell by nearly 10 per cent to 3,141 units (compare to last month)

The pullback in sales has not occurred across all price ranges, as homes priced over $1,000,000 have recorded gains over last year. These gains have mostly been driven by detached and semi-detached homes and are also consistent with where most of the supply growth has occurred.

“While sales growth in the upper end of the market was possible thanks to improved supply choice, it also reflects longer-term confidence in our market, as some buyers are not shying away from taking advantage of the available supply,” said Ann-Marie Lurie, Chief Economist at the Calgary Real Estate Board (CREB®). “Meanwhile, we have not seen the same pickup in activity in the lower price ranges, as favourable rental conditions are slowing the transition to ownership.”

Inventory levels in August eased compared with the previous month and the same period last year, at 6,509 units. However, given the pullback in sales, the months of supply pushed up to nearly four months. Also consistent with trends throughout this year, conditions vary significantly by property type, with nearly six months of supply for apartment-stylecondoscompared with over three months of supply for lower-densitydetached homes.

The relatively balanced conditions in the detached and semi-detached sector have prevented any significant shifts in prices compared with thesteady price declines occurring in the oversupplied higher-density segments of the market. As of August, the total residential benchmark price was $569,800, similar to the previous month and one per cent lower than 2025 levels.

Detached

Gains in higher-priced sales were not enough to offset the pullbacks occurring for homes priced below $1,000,000, as sales fell by 12 per cent to 875 units. At the same time, new listings trended down compared with both July and August 2025 levels, reaching 1,635 units. The steeper decline in sales compared with inventory levels was enough to support a modest monthly gain in inventory levels and drove up the months of supply to over three months. Market balance varies significantly based on price range and location. The months of supply remain below three months in the North West, West, South and South East districts, and above four months in the North and North East districts. The wide range of market balance is also reflected in pricing. Year-over-year gains of over two per cent have occurred in the West and City Centre districts. Meanwhile, price declines were the steepest in the North East at over six per cent. Overall, the benchmark price in August was $744,300, similar to July and down by one per cent compared with last year.

Semi-Detached

Easing sales in August were enough to push year-to-date sales down to 1,516 units, over two per cent lower than last year’s levels. The easing of August sales was not matched by new listings, causing the sales-to-new-listings ratio to fall to 56 per cent. While inventories eased slightly compared with the previous month, they remain nearly five per cent higher than last year. The steeper monthly pullback in sales compared with inventories was enough to push the months of supply above three months, the first time this has happened since January. Despite the shift, conditions remain relatively balanced, and prices have been relatively stable. As of August, the unadjusted benchmark price was $690,500, similar to the previous month and nearly one per cent higher than last year's levels. Price gains in the City Centre, North West and West districts offset pullbacks in other areas, contributing to the annual gain.

Row

Sales continued to ease in August compared with last year, contributing to the year-to-date pullback of 15 per cent. Additional new-home supply, along with more rental product availability, has contributed to some of the pullback in sales activity. Meanwhile, the pullback in new listings has helped prevent any further gains in inventory levels, and the months of supply remained near four months for the second month in a row. Like other sectors, conditions vary depending on location. The months of supply pushed above four months in the City Centre, North East and North districts, while remaining near three months in the West district. Prices have been easing across all districts in the city. The range of decline varied from over 12 per cent in the North East to just over one per cent in the North West district. As of August, the benchmark price was $415,200, down nearly one per cent from July and five per cent lower than levels reported last year at this time.

Apartment Condominium

Apartment-style homes continue to face the most oversupply in the market, with nearly six months of resale supply. More rental supply is weighing on ownership demand from both first-time buyers and investors, which is slowing sales activity while supply levels remain elevated. In August, sales activity continued to fall, contributing to the year-to-date decline of 26 per cent. New listings have also been declining enough to prevent any further inventory gain, but not enough to help the market shift away from buyer-market conditions. Persistently high supply levels relative to demand have weighed on apartment-style prices for the past two years. As of August, the unadjusted benchmark price was $295,400, nearly one per cent lower than the previous month and eight per cent lower than 2025 levels. Prices peaked in August 2024 at $341,300 and currently sit nearly 13 per cent lower than the peak price. 

REGIONAL MARKET FACTS

Airdrie

Sales continued to trend down in August, contributing to the year-to-date decline of 13 per cent. Easing sales have also been met with a seven per cent pullback in new listings over the same period. Throughout most of the year, inventory levels have generally trended higher than last year’s levels and longer-term trends. Over the past few months, we have started to see the pullback in new listings relative to sales cause the sales-to-new-listings ratio to rise, and this has helped prevent any further inventory gains and kept the months of supply below four months. Nonetheless, pressure from competing markets continues to weigh on resale prices. As of August, the unadjusted total residential benchmark price was $508,800, down one per cent from July and over four per cent compared with last year at this time. Steeper price declines are occurring for higher-density apartment-style homes.  
 

Cochrane

Sales improved in August, contributing to the year-to-date gain of over five per cent. Much of the gain in sales has been driven by semi-detached activity. New listings also improved in August compared with last year. The 148 new listings and 94 sales caused the sales-to-new-listings ratio to push above 60 per cent, and inventories edged down compared with the previous month. The boost in sales in August compared with inventory levels caused the months of supply to drop back down to just over three months. Nonetheless, prices still trended down in August. The unadjusted total residential benchmark price eased by nearly one per cent compared with July and is two per cent lower than levels reported last year.  
 

Okotoks

Further declines in new listings likely limited sales activity in August, as the sales-to-new-listings ratio remained elevated at 81 per cent. This contributed to the monthly pullback in inventories, keeping conditions relatively tight with just over two months of supply. Okotoks has struggled with lower-than-average supply levels since 2021, but additional supply choice in competing markets is helping prevent further upward pressure on prices. As of August, the unadjusted total residential benchmark price was $608,400, over one per cent lower compared with July and nearly two per cent lower than last year's levels.

If your Calgary home isn’t selling, the problem might not be the market. It might be the price.
And one of the biggest pricing mistakes I see Calgary sellers make has nothing to do with the house itself. It’s how they arrive at the number.

When you’re selling a home, it’s completely natural to think about what you need to make, what you paid for the property, or what your neighbour is asking. But here’s the problem: none of those things determine what your home is worth in today’s Calgary real estate market. The market does.

“But we need to get $X.”

I hear this one a lot. Maybe you’re moving because of a job. Maybe you’ve already bought another home. Maybe you’re counting on a certain amount of equity for your next down payment. Whatever the reason, you have a number in your head, and that number may be completely reasonable for your plans.

But buyers don’t price your home based on what you need. They’re looking at your home and comparing it to everything else they can buy with their budget. If your Calgary home is worth $700,000 based on current comparable sales, pricing it at $775,000 because you need $775,000 doesn’t change its market value. It just changes how you compete and potentially how long you sit on the market.

Your neighbour’s listing price isn’t your home’s value

This is another big one. Your neighbour listed their house for $850,000, so naturally you think yours should be around there too.

Except… listed price does not equal sold price.

Your neighbour may have priced aggressively. They may have priced strategically. They may have overpriced. Their home may have a better lot, a different floor plan, more renovations, a finished basement, or a completely different location. And most importantly, we don’t know what a buyer will actually pay for it until it sells.

When I’m helping a seller determine the right price, I’m much more interested in what similar Calgary homes have actually sold for than what another homeowner is hoping to get. What have comparable homes sold for recently? How quickly did they sell? Were there multiple offers? How much competition is currently on the market? And what are buyers choosing when they have several similar homes in front of them?

That’s the information that matters.

“But we paid $X for it…”

This one is completely understandable. You bought your home for $550,000. Since then, you renovated the kitchen, replaced the roof, landscaped the backyard and probably poured a whole lot of time, money and energy into making the house your own. So surely it’s worth more now.

Maybe.
But the real estate market doesn’t work like a receipt. You don’t get to add up every dollar you’ve spent and present the total to the next buyer.

Some improvements add significant value. Some simply maintain the property. Some are personal choices that may not matter much to the next homeowner. And sometimes the renovation you absolutely love is the first thing a buyer says they want to change.

The money you invested in your home is part of your story. It isn’t automatically part of its market value.

So how do you actually price a home in Calgary?

You start by thinking like a buyer.
If your home hit the market today, what would a buyer compare it against? That’s where the pricing conversation should start.

I look at things like:

• Recent sales of truly comparable Calgary homes

• Current competing listings

• Location and neighbourhood

• Lot size and orientation

• Square footage and floor plan

• Condition and overall presentation

• Renovations and upgrades

• Basement development

• Days on market for comparable properties

• Current buyer demand

• The price range where your home will compete most effectively

And there’s one more thing I care about: how will buyers feel when they see your price?
Because pricing isn’t just math. It’s psychology.

The danger of “let’s start high and see what happens”

This sounds harmless.

“We can always reduce the price later.”
Technically, yes. But the market has a memory.

When a home launches overpriced, you may miss the buyers who would have been excited about it at the right price. Then the listing sits. And sits. And eventually, you reduce the price. Now buyers may start wondering: What’s wrong with it?

Meanwhile, the homes that were priced properly from the beginning may already be sold. That’s why I’d much rather have a seller launch with a price that makes buyers think, “We need to go see this,” instead of, “That seems expensive. Maybe they’ll come down.”

Those are two very different conversations.

The goal isn’t to be the cheapest house on the street

Proper pricing doesn’t mean underpricing your home. It means positioning it correctly. There’s a sweet spot where your home is competitive enough to attract attention while still reflecting what the market is likely to support. And sometimes that means pricing slightly below what you could theoretically ask to create more interest. Other times, it means confidently pricing higher because the property genuinely supports it.

There is no magic percentage. There is no universal “price per square foot” that tells the whole story. There is only the right strategy for that home, in that market, at that moment.

Your home is worth what the market says it’s worth

I know that can sound harsh. Your home is personal to you. You remember bringing your kids home there. You remember the backyard birthday parties. You remember the renovation you did yourselves. You remember all the weekends you spent turning the house into your home.
Those things matter. They just don’t determine the price.

The buyer does.

And the best pricing strategy isn’t about taking emotion out of the sale completely. It’s about separating your emotional attachment from your financial strategy. Because the goal isn’t to prove that your home is worth a certain number. The goal is to sell it for the strongest price the market will support with the least amount of unnecessary time, stress and negotiating.

That’s a very different approach.

How do I know what my Calgary home is worth?

A good starting point is to look at recently sold comparable homes, not just active listings.

The key word is comparable. A four-bedroom home in one Calgary neighbourhood isn’t necessarily comparable to a four-bedroom home across the city. Even within the same neighbourhood, lot, layout, condition, renovations, basement development and location can make a significant difference.

That’s why a proper pricing analysis looks at the whole picture rather than simply pulling a number from an online estimate.

Should I price my Calgary home higher to leave room for negotiation?

Not necessarily.

There’s a difference between pricing strategically and pricing unrealistically high. If your home is significantly more expensive than the alternatives buyers are considering, you may actually reduce the number of people who see it.

The strongest negotiating position often starts with a price that makes sense to the market in the first place.

Should I price my home based on what my neighbour is asking?

No, at least not on that information alone.

An active listing tells you what another seller wants to get. A sold property tells you what a buyer was actually willing to pay.
Those are very different pieces of information.

Does what I paid for my home matter?

It matters to you financially, but it doesn’t determine the home's current market value. You could have bought at exactly the right time, or you could have overpaid. You could have renovated extensively, or barely changed a thing. The market today is still the market today.

Your purchase price is part of the history of the property. It isn't a pricing strategy.

Thinking about selling your Calgary home?

Before you pick a number, let’s look at what the market is actually telling us. Because your home deserves a pricing strategy not a guess. I would be happy to chat and help.