Prices down 14%+ in North East heighten shortfall risk at funding
Calgary's apartment condominium benchmark price fell to $299,000 in June, down nearly 9% from a year earlier, a decline recorded across every district, which shifts the sharpest financing risk in the segment from qualifying buyers to closing their deals.
The Calgary Real Estate Board reported the apartment sector at nearly five months of supply and a sales-to-new-listings ratio of 45%, placing it firmly in buyer's market territory. Year-to-date condo sales fell 26% to 2,260 units. June inventory reached 2,076 units, more than 24% above typical levels for the month.
CREB chief economist Ann-Marie Lurie tied the decline to supply and weaker migration. "Inventory growth has mostly occurred in high-density homes, resulting in buyer's market conditions and steep price adjustments for condominium apartments," Lurie said. She added that detached supply growth has been limited, with some districts reporting record-high prices.
The district spread is wide. Declines exceeded 14% in the North East and East districts, while the North West posted the smallest drop at 7.5%. Prices fell in every district measured.
Falling values collide with fixed contracts
Lenders advance funds against a property's appraised value rather than the contract price, according to real estate closing service Deeded. When the appraisal falls below the agreed price, the buyer must fund the difference or the deal can fail at closing.
Brokers report the gap is already appearing locally. "I've been seeing a noticeable uptick in appraisals coming in below purchase price," wrote Marko Gelo, a mortgage broker working across the Calgary and Vancouver markets. He described the affected properties as ones that no longer line up with recent comparable sales, adding that lenders do not negotiate over appraisals.
Independent figures confirm the direction. WOWA data placed the May apartment benchmark down 9.1% year over year to $300,400, while nesto reported the condo benchmark at the same level, with sales down 30%. Provincial data echoes the strain: CREB reported that Airdrie's benchmark fell nearly 4% to $516,900 as higher-density homes led the declines.
Thin comparable data compounds the problem
Appraisal accuracy depends on recent comparable sales, and condo transactions have thinned. Year-to-date apartment sales are down 26%, leaving appraisers fewer recent deals to reference. Sparse comparable data raises the likelihood of valuations that diverge from contract prices, according to industry commentary on 2026 appraisal conditions.
Gelo described the deal-structure options open to brokers when a gap appears. In one case, he reduced a buyer's down payment and increased the mortgage to absorb a $40,000 shortfall without additional cash. He also described shifting files into insured, high-ratio territory, where the mortgage is insured against default and the lender is protected regardless of current market value.
Wider market data frames the segment's position. Calgary's condo share of total sales reached close to one-third at its 2024 peak and has since fallen to about one-fifth, according to WOWA, as rising supply and softer demand pulled the segment back. CMHC projects the Calgary rental vacancy rate at 5.7% in 2026, reflecting the new supply that CREB links to condo-ownership softness.
Citywide, the total residential benchmark reached $572,500 in June, up from May but 2% below last June. The detached benchmark held at $750,500, roughly 1% under last year, with the City Centre and West districts reaching record highs.
