Airdrie Real Estate Market Report: May 2025 Shows Market Normalization

The Airdrie real estate market continued its transition toward balanced conditions in May 2025, with significant shifts in inventory levels and buyer choice compared to the heated market conditions of previous years.

Market Overview: Key Metrics

Sales Activity: Airdrie recorded 193 home sales in May, representing an 8.1% decline from May 2024. Year-to-date sales of 772 units are down 9.6% but remain consistent with long-term historical trends for the city.

Pricing: The total residential benchmark price reached $540,600 in May, down 1.6% year-over-year and nearly 1% from the previous month. This represents the first meaningful price correction after years of significant growth.

Inventory Surge: Perhaps the most significant development is the dramatic increase in available inventory. With 468 units available in May, inventory levels jumped 124% compared to last year, reaching the highest May levels since before the pandemic.

Supply and Demand Dynamics

The relationship between supply and demand has shifted considerably from the extreme seller's market conditions of 2023-2024. New listings increased 19.7% year-over-year to 334 units, while the sales-to-new-listings ratio fell to 58% - a dramatic change from the over 90% ratio reported last year.

This shift has resulted in 2.42 months of supply, indicating a market that remains within balanced conditions but is trending away from the supply-constrained environment that drove rapid price appreciation.

New Construction Impact

The inventory increase is partly attributed to a surge in new construction, providing consumers with significantly more options. This additional supply choice is directly impacting price growth, as buyers now have alternatives and negotiating power they lacked in previous years.

Airdrie vs. Calgary Comparison

When compared to Calgary's market performance, several interesting contrasts emerge:

Market Balance:

• Airdrie: 58% sales-to-new-listings ratio
• Calgary: 53% sales-to-new-listings ratio

Months of Supply:

• Airdrie: 2.42 months
• Calgary: 2.62 months

Price Performance:

• Airdrie benchmark: $540,600 (-1.6% Y/Y)
• Calgary benchmark: $589,900 (+2.5% Y/Y)

Sales Volume:

• Airdrie: 193 sales (-8.1% Y/Y)
• Calgary: 2,568 sales (+11.6% Y/Y)

Market Implications

For Buyers: The current market conditions represent a significant improvement in buyer positioning. Increased inventory, more time to make decisions, and price stabilization create a more favorable purchasing environment than seen in recent years.

For Sellers: While market conditions remain reasonable, sellers must adjust expectations from the rapid-sale, multiple-offer environment of 2023-2024. Competitive pricing and proper market positioning are increasingly important.

Looking Forward

Airdrie's market appears to be successfully transitioning from the extreme conditions of recent years toward a more sustainable, balanced state. The 772 year-to-date sales align with long-term trends, suggesting the market is finding its natural equilibrium.

The combination of increased supply from new construction and normalizing demand patterns suggests this balanced environment may persist, offering both buyers and sellers more predictable market conditions.

Market Outlook

With inventory levels approaching pre-pandemic norms and supply continuing to increase through new construction, Airdrie's real estate market is positioned for continued normalization through the remainder of 2025. This represents a healthy correction from the unsustainable pace of previous years, creating a more stable foundation for future growth.

The market's evolution toward balanced conditions, combined with Airdrie's continued appeal as a Calgary bedroom community, suggests steady, sustainable market performance ahead.