Underbidding in Calgary reached its peak in the fourth quarter: Wahi

Calgary’s real estate market has experienced a significant shift, transitioning from frenzied bidding wars in the spring to a more subdued environment by the end of 2024.

New data from Wahi indicates that the market slowed down considerably in the fourth quarter, with most neighbourhoods seeing underbidding rather than the intense competition seen earlier in the year.

A change in buyer behavior

According to Wahi’s analysis, only four out of 176 Calgary neighborhoods had homes selling for more than the asking price in Q4, representing just 2% of the market. Meanwhile, six neighborhoods saw homes selling at the asking price, while 94% experienced underbidding.

“Homebuying competition in Calgary has decreased beyond the typical seasonal slowdown expected towards the end of the year,” says Wahi CEO Benjy Katchen.

This cooling trend follows a sharp decline in overbidding that started in Q3, with the percentage of neighborhoods in overbidding territory dropping to 10%, down from 54% at the peak of the market frenzy in Q2.

Decreasing prices and market adjustments

Along with the decrease in bidding wars, Calgary home prices dropped in Q4. The median home price went from $575,000 in October to $555,000 in December, marking a 3% decrease.

However, underbidding doesn’t always mean buyers are getting a great deal. “The home could have been listed above its reasonable value,” Katchen explains. “In some cases, when underbidding increases, sellers may need to adjust their pricing expectations.”

Despite the increase in underbidding, sale prices remained relatively close to list prices in Q3, with 69% of neighborhoods seeing overbids or underbids of no more than $5,000. By Q4, this number dropped to 17%, indicating buyers had more negotiation power.

What’s Next for Calgary Real Estate?

Early 2025 data suggests a potential rebound is underway. The median home price in Calgary rose to $573,000 in January, a 9% increase from $525,000 a year earlier and a 3% increase from December’s $555,000.

“With various uncertainties ahead, including the upcoming Canadian election and potential U.S. tariffs, we will continue to monitor the Calgary market to see how homebuyers react,” says Katchen.