There’s nothing quite like having a personal retreat or home away from home that you can call your own. Who wouldn’t want to own a place to relax, recharge, and create cherished moments with family and friends anytime you want?

But how do you make it happen?

Most people consider vacation home ownership a luxury — something they dream of and save for but ultimately feels a little out of reach.  It’s undoubtedly true that owning a vacation property can be luxurious and that you should always strive to make sound purchases within your financial reach.

However, if you are a homeowner looking to invest in something new or are currently reconsidering your investment options, there are ways to hack vacation home ownership from a luxurious pipe dream into an investment reality.  

Offset the Costs of Vacation Home Ownership With Rental Income

We get it. When you envision your dream vacation home, you might not have pictured other people staying there. But chances are, your dream spot is probably someone else’s too. 

Purchasing a vacation home that can double as a rental property when you are not using it is a super effective way to generate income and help offset the often prohibitive ownership costs of owning a vacation property. 

Here in beautiful Alberta, where we have spectacular mountain settings that draw in tourists from around the world all year round, there are many opportunities to invest in vacation homes that also serve as excellent rental properties. 

It’s also worth noting that since COVID, vacation home destinations like Canmore or Banff, have seen the highest price appreciations in Alberta.  Popular vacation destinations such as these create high-demand rentals that allow you to earn significant investment returns in the long term. 

Finding the Right Vacation Rental Property 

When investing in a vacation rental home, considering features that allow you to monetize the property is essential. 
Research market trends and consult a Realtor®. You will want to hone in on sought-after and desirable areas with growing markets where your investment may yield long-term financial gains. 

In addition, details like curb appeal for potential renters, access to nature or nearby amenities, and whether or not the property is zoned for short-term rentals are all crucial considerations. 

Familiarize yourself with local rental regulations and zoning laws. Some areas have restrictions on short-term rentals, limiting your ability to rent out the property for shorter durations (typically 30 days or less). Ensure compliance with local codes before finalizing your investment.

If you’re willing to be strategic about location and timing, it’s possible to find a great vacation property that serves your needs, increase your quality of life, and generates income at the same time, 

Ensuring Long-Term Success 

Vacation rental ownership is still home ownership, not a passive revenue stream. 

Like all real estate assets, somebody must maintain the property to hold its value. Owning a vacation home entails various expenses, including mortgage payments, property taxes, insurance, maintenance costs, restocking supplies and buying furniture. It's crucial to factor in these ongoing expenses when considering the financial viability of the investment.

You’ll also want to consider seasonal demand. Plan for the future and ensure you have a rainy day fund that can insulate you against rental challenges such as ‘black swan’ events like COVID-19, where tourism of demand can temporarily come to a screeching halt. 

Last but not least, effective management is key. You can save up to 30% of your gross revenue by forgoing a management company and handling management yourself. Still, you must ensure an exceptional guest experience to get the most out of your rental property.   Achieving good reviews and ensuring quick response times will allow you to charge more and increase your SEO ranking on popular sites like Airbnb and VRBO.

Conclusion

Investing in a vacation home can offer a unique blend of personal enjoyment and financial opportunities. 

By considering the pros and cons, conducting thorough market research, and implementing smart management strategies, you can maximize the potential of your investment property and own a dream vacation property for you and your family to enjoy. 

Think you’re ready to invest?

If you need help, advice, or assistance finding the right property, don’t hesitate to reach out!

Summer is here! And what better time to embrace the outdoors and transform your backyard, patio or garden into a captivating outdoor oasis?

Whether hosting a barbecue, enjoying a quiet evening with a book, or entertaining friends and family, a well-designed outdoor area provides endless joy and relaxation and increases resale value.

Here are some ways to spruce up your outdoor space to maximize functionality, lifestyle, and value.

Vision Before the Mission

Before diving into any outdoor project, start by mapping out your vision. Consider what you want from your space and how you intend to use it. Do you want a cozy retreat, a seasonal garden, a vibrant entertainment space, or a combination of things?

When planning, make sure you also take into account the balance between design, function and maintenance. We tell clients to ask themselves how much time they want to spend enjoying their yard vs. working on it. Specific design features, like a beautiful backyard garden, can add a lovely visual aesthetic but require much work to maintain.

For adaptability and resale value, functional outdoor spaces that can be multi-purposed are always the best bet. Think long-term. Building a deck that takes up your entire yard and leaves no grass space (and vice versa) might serve your interests now, but that could change if you have children or decide to sell the property.

Key Features to Consider

No matter the size of your outdoor space or what neighbourhood you live in, there are some key features to consider when designing:

Landscaping and Greenery

The simplest way to enhance your backyard, a well-maintained landscape sets the foundation for a beautiful outdoor living area. Consider low-maintenance options such as native plants or drought-tolerant species to save time and water.

Outdoor Furniture

Arrange seating areas strategically, keeping in mind the flow of traffic and the focal points of your outdoor space. Consider adding a dining set, lounge chairs, hammock, or cozy outdoor sofa to cater to different activities and relaxation needs.

Shade and Shelter

Shelter from the elements is a must. Install a retractable awning or pergola to provide relief from the sun's rays. Enhance your space by adding outdoor curtains, sun sails, or a well-placed shade tree.

Privacy Features

Great for resale value and even better for your comfort, creating additional layers of privacy through the use of lattices and privacy screens or planting trees is a welcome addition to any outdoor space. 

Outdoor Lighting

Nothing brings an outdoor space to life at night like good lighting. Create a magical ambiance with soft string lights, lanterns, or solar-powered LED fixtures. Not only does lighting enhance the aesthetics of your space, but it also increases security. 

Remember, Climate Counts

While designing any outdoors in Alberta, it’s essential to consider the climate.  Rather than building multiple spaces at once, we suggest starting with just one.  This will keep costs down and allow you to consider opting for high-quality finishings and durable building materials, such as composite decking, that can withstand winter weather conditions.

Don’t forget that there are still opportunities to use your outdoor space throughout the off-season. The addition of propane heaters, fireplaces, or a well-designed shelter can make the patio a comfortable place to sit on a fall evening or spring afternoon. 

Here in Calgary, where we are the benefactors of chinooks, an easy-to-shovel pad around a fire pit, a covered barbecue area, or easy-to-access storage spaces for outdoor furniture can make it easier to pop outdoors for a bit during those welcome bursts of warmer winter weather.

In Summary

With creativity and planning, you can transform your backyard, patio, or garden into a beautiful outdoor oasis that reflects your personal style and enhances your living experience.

But remember to consider additional factors like:

• How much time you want to spend working in your outdoor space versus enjoying your outdoor space;

• Your plans for the home in the next three to five years;

• Flexible designs that are adaptable and add resale value;

• The impact of climate on design materials and choices.

Let your imagination run wild, and….don’t forget to have fun!

Where does a Realtor® invest their money? 

It’s a good question, and I can’t speak for other Realtors®, but for myself, surprise, surprise…the answer is: primarily real estate. It sounds typical that a real estate agent says they mainly invest in real estate, but let me explain further. 

Firstly, let’s be clear that by investing in real estate, we’re not talking strictly about homeownership but rather how you invest the money left over after paying for your home and your fixed monthly expenses. 

When you consider it this way, there are many different places you could choose to invest your hard-earned dollars: stocks, bonds, mutual funds and ETFs, tax-free or high-interest savings accounts and GICs, start-up companies etc.  

So what is the merit of investing your money in real estate versus, say, putting it all into the stock market or some other asset?

The Value of Real Estate as a Place to Invest Your Money

While I do invest in the stock market and like to take risks so that my money is working for me, with a family, my risk tolerance is lower.  Cashflow rental properties are a safe and stable place to get your money working for you without taking on the higher level of risk that other investments might have. 

Why is this?

Unlike stocks and bonds, real estate is a physical asset not devalued by inflation. In fact, real estate values usually increase as inflation goes up.  Simply put, your real estate investments will likely grow alongside the cost of living. 

This also makes real estate an ideal investment for people who want to preserve their wealth long-term and hedge against inflation because the equity in your real estate investment can provide a buffer against other assets that may have lost their value, especially in the current climate, where real estate values in Calgary have outpaced record-high inflation numbers. 

It’s worth mentioning that when I look back at where I’ve seen the most sustainable gains in my net worth, the majority resulted from cash-flow-producing real estate and not the stock market.  

Who Doesn’t Like a Three-course Meal?

A great way to think about investing in real estate is like a three-course meal that pays off in multiple ways. 

For the Main Course: Mortgage Paydown 

Meals don’t typically start with the main course, but this one does. The mortgage paydown, month over month, year over. You’re responsible for the down payment and the risk of taking on a mortgage, but someone else pays down the mortgage and the cost of borrowing the money to purchase the asset. As Thomas Beyer suggests, you will get rich and fat on the main course alone.* 

The Appetizer: Positive Cash Flow 

A positive cash-flow property is one where the annual cost of ownership does not exceed the rental revenue received, generating a passive source of income for the investor, with the added benefits of writing off many expenses for supplies and maintenance on their tax return.  Remember that, like an appetizer, positive cash flow is appreciated but not required (breaking even is okay) because you are feasting on the main course. 

The Desert: Equity Appreciation 

Like an appetizer, dessert makes a great addition to a meal but is not required for you to feast. While it is speculative that real estate values will increase, historically, we know they generally do. The equity which accrues from owning the property over time is the bonus you receive for investing in the asset over and above what you have earned from the main course.  

What Kind of Properties Should You Invest In?

Generally speaking, you want to ensure you invest in properties where you can turn a positive cash flow. 

I like to focus on purpose-built rentals (homes/apartments built strictly for the purpose of renting) and new homes.  Not only do tenants like the feeling of renting a new home, but you can charge more for rent and generally tend to attract better tenants.  In addition, you’re looking at minimal maintenance costs in the first five years minimum. 

Another option is purchasing a property you can rent out on Airbnb and then potentially use as a personal vacation property when it’s not being rented.  Airbnb properties earn higher revenue but take more time and effort to manage.

Ultimately, don’t rush your investment.  Do proper market research, and see which neighbourhoods or areas in your region are in high demand.  Right now, for example, Canmore is a great place to invest. With the increased demand for rentals, low supply, and a steady flow of national and international tourists, Canmore has seen some of the highest price appreciation in Alberta over the last few years. 

Need More Advice?

One thing that makes us unique at Trung Bien Real Estate Team is that we’re not just Realtors®; we’re real estate investors, inner-city developers and project managers with years of industry experience.  

I learned most of what I know about investing in real estate before I became a real estate agent while working as a real estate investor.  I’m not ashamed to say I made plenty of costly mistakes, have learned from them, and now use that knowledge when helping clients avoid stepping into the same pitfalls I did as a newbie investor. 

If you’ve got a question or need help determining what kind of property would be the best real estate investment, don’t hesitate to reach out. 

Source: https://www.prestprop.com/2014/07/18/real-estate-three-course-meal/

It’s not uncommon for sellers to come to us with misconceptions about their home's true market value because they’ve just received their City of Calgary property assessment. 

But many buyers and sellers are surprised to find there is often a notable difference between the assessed value of their home and the market value that a professional Realtor® estimates.  

So which appraisal method is the right one to use when buying or selling a house, and what accounts for the discrepancy?

Let’s take a closer look. 

The Difference between Assessed Value and Market Value

First things first, let’s outline the difference between assessed value and market value. 

The assessed value of your home is the amount the city determines your home is worth for the sole purpose of collecting taxes you must pay for owning the property. 

Calculating assessed values allows the city to make probable forecasts about the revenue it will collect from property taxes based on shifts in the real estate market. 

On the other hand, market value is how much your home is worth on the real estate market today. True market value is decided by the amount a buyer is willing to pay and at what price a seller is willing to sell for at any given point in time. 

Not surprisingly, market values typically vary from assessed values.

Why are there always discrepancies between the assessed value of a home and the real market value?

When you consider how the city assesses home values, it’s no surprise we see discrepancies between the assessed value and market value.

To determine the value of your home, the city uses a mass appraisal method, which evaluates the value of a larger group of houses as of a specific date based on sales comparisons in your neighbourhood — in Calgary, July 1st of the previous year. 

When using the mass appraisal method, the city does not look at all property-specific things that make your home unique to other homes in the area: important details like curb appeal, sale-ability, upgrades and renovations. 

When a Realtor® helps you price your home, they determine current market value based on these considerations and more recent history (90 to 180 days) of comparable sales in your area. 

If you really think about it, true market value (the exact price a buyer is willing to pay and seller is willing to sell) is almost the opposite of mass appraisal. 

No wonder there’s a difference!

So what does the city assessment mean for you as a home buyer or seller?

We generally tell clients not to place too much stock in assessed value.  Unless they’re trying to determine how much they’ll need to budget for property taxes. 

Realistically speaking, when given a chance to pay fewer taxes, most homeowners aren’t calling the city to challenge the assessment because it was too low. 

The bottom line is that if you are considering selling a Calgary home, don’t be attached to the most recent valuation on your property assessment. 

If you’re looking to determine the real market value of your home based on current conditions, give us a call. We’d be happy to help!

If home isn’t selling in Calgary’s current market, the first instinct is often to point to the headlines: interest rates, inventory shifts, seasonal slowdowns, or broad national and U.S. market stories that don’t always apply to Calgary’s local dynamics.

 While these factors certainly drive overall buyer behaviour, in a balanced market, success doesn’t come down to luck or timing alone. It also depends heavily on execution and understanding the difference between what you, as a seller, can control and what you can’t.

In this month’s blog, we break down the nuances of pricing and presentation to give sellers a clearer sense of how to maximize the value of their property and sell faster in today’s market conditions.

What Calgary Buyers Evaluate vs. What You Control

Generally speaking, when buyers assess a property, they consider a wide range of intersecting factors:

• Overall condition

• Layout and size

• Features and upgrades

• Location

• Broader market conditions

• Interest rates

• Price

As a seller, many of these factors are outside your control.

For example, you cannot change your location or influence mortgage rate decisions any more than you can reduce city-wide inventory levels or shift buyer confidence across the Calgary real estate market.

However, though these forces shape the environment, they do not determine your outcome entirely on their own.
In every market cycle, two levers remain firmly in the seller’s hands: price and presentation. When those two are aligned with current conditions, generally homes will sell faster. When they are not, sales tend to stall.

Let’s break this down further.

Making Sure Your Price is Right

Calgary’s 2026 market is balanced, not broken. In other words, buyers behave more deliberately and have more selection and time to negotiate. Homes that are priced accurately and presented professionally are selling. Homes that are not are sitting on the market longer.

As a seller, price is the dominant factor that lies firmly within your control.

In a balanced market, the first two weeks are critical. That initial window generates the highest visibility and the strongest leverage. Launching too high to “test” the market often means sacrificing that momentum.
In determining the right price, avoid these pricing pitfalls:

1. Pricing for Yesterday’s Market

Between 2022 and early 2024, Calgary experienced strong appreciation and competitive demand. In that environment, even slightly optimistic pricing could be adjusted quickly if there was a demonstrated lack of interest without serious consequences. That is no longer the case.

Today’s buyers are informed and comparison-driven, have more choices, and are watching for price reductions. If your list price is anchored to last year’s peak instead of this quarter’s reality, buyers do not negotiate upward. They simply move on.

2. Emotionally Anchoring to Past Peaks or Property Investments

Closely related to the temptation to price to yesterday’s market is perhaps the most subtle obstacle: emotion-based expectations. It is understandable why you might feel your home is worth what your neighbour achieved at the height of the market. Or, to want to price your home to recoup the money you invested over the years.

But unfortunately, markets do not reward sentiment. The question is not what the home meant to you, or what you feel it should be worth. It is what today’s buyer is willing to pay, relative to what recent comparables in your area indicate about your home’s value.

Pricing accurately is not about leaving money on the table. It is about protecting your strongest negotiating position.

Presentation, Presentation… Presentation

In a competitive environment, presentation supports price. Without a proper presentation, buyers quickly discount the home's value in their minds.

Like price, how you present your home is a factor that is within your control.

We can’t stress enough that buyers want to visualize themselves living in their new home, not yours. Presentation is one of the most effective ways to reinforce your property's value and justify your asking price.

1. Aim for Strong Curb Appeal in a Market With Options

When inventory rises, buyers become selective. Small visual signals can have an outsized impact. Peeling trim, tired landscaping, dated exterior lighting, smells or odours, or minor deferred maintenance can subtly suggest larger issues. Whether fair or not, perception drives negotiation.

 Often, the highest-impact improvements are simple:

• Pressure washing exterior surfaces

• Fresh paint on the front door or trim

• Clean landscaping and defined edges

• Replacing dated exterior fixtures

In the winter, ensure walks are shovelled and driveways are cleared of snow and ice to allow easy access.

2. Unpolished Marketing and Amateur Execution

Buyers shop online first. If your home does not stand out digitally, it will not generate showings. We still see listings with:

• Dark or poorly composed photos

• Cluttered or unstaged rooms

• Minimal property descriptions

• Limited exposure through discount or for-sale-by-owner platforms

In a seller’s market, an average presentation might still work. In a balanced market, it rarely does.
Professional photography, thoughtful staging, and strategic exposure are not luxuries. They are baseline expectations. When a presentation feels rushed or unpolished, buyers assume the home may be as well.

3. Maximize ROI with Smart Upgrades

Contrary to what many sellers believe, you don’t have to invest a fortune to make smart upgrades that increase the value of your property in the buyer’s eyes. Cost-effective improvements help you maximize value without over-investing in areas that may not provide a strong return.

• Paint touch-ups

• Flooring repairs or replacement

• Kitchen upgrades, such as swapping outdated hardware for neutral, modern options that can provide a quick refresh

• Swapping outdated lighting fixtures for modern designs to elevate the overall feel without a significant investment

Read our previous blog on “Maximizing ROI with Smart Upgrades” here.

4. Create a Showhome Feel to Attract Buyers

Creating a clean, neutral, and hotel-like environment, similar to what you might do when renting your home on Airbnb, helps potential buyers visualize their future in the space.

• Deep clean

• Declutter and pre-pack

• Neutral design and decor
  

Representation Counts More than Ever

Balanced markets distinguish transactional or formulaic processes from strategic approaches.
An experienced Realtor does more than place a sign on your lawn and upload photos to MLS. They analyze absorption rates, monitor competing inventory, interpret buyer feedback in real time, and adjust strategy before small issues become larger price reductions.

In today’s environment, overpromising on price to win a listing can cost sellers weeks on market and eventual reductions that erode negotiating power. An experienced agent provides honest guidance from the start, even when the conversation is difficult. That clarity protects your momentum and positions your home competitively from day one.

Strong representation also means disciplined execution. It means knowing when to hold firm, when to adjust, and how to structure negotiations to protect your bottom line. In a balanced market, that level of strategic oversight can be the difference between a reactive sale and a controlled one.

Final Thoughts

If your Calgary home isn't selling, the issue is rarely a single, dramatic factor. It is usually a combination of pricing, presentation, and positioning that needs refinement. You cannot control interest rates or broader market conditions. You can control how your home competes within them.

In 2026, sellers who focus on what they can control and execute with discipline are still achieving strong results. In a balanced market, success is not about hoping the market shifts. It is about positioning your home to lead within the market that exists today.

If you are preparing to list your home, we would be happy to review your pricing, presentation, and overall strategy.
Sometimes, a few strategic adjustments can make all the difference.

Get in touch with us now.

After strong home price appreciation between 2022 and 2024, Calgary’s housing market has moved into more balanced and buyer-leaning conditions. Benchmark prices are no longer rising at the same pace and, in some segments, have flattened or softened.

Generally speaking, market stability supports affordability because buyers are not competing in the same urgency-driven environment seen in prior years. However, prices have not returned to pre-growth levels, and first-time entry into the market still requires meaningful capital and qualification under today’s lending standards.

As a result, many potential first-time buyers, as well as those considering a move to Calgary, are wondering whether the city remains affordable to buy a home.

Read on as this month’s blog breaks down how wages, interest rates, and home prices intersect in 2026, and what that means for affordability at the household level.

Calgary’s Comparative Affordability

In a national context, Calgary remains more affordable than most major Canadian cities. Real estate prices here are still considerably lower than in Toronto and Vancouver, making Calgary appealing to prospective buyers from those markets.

What might purchase a small two-bedroom apartment in downtown Toronto can still secure a reasonably sized single-family home with a backyard in many of Calgary’s desirable suburban neighbourhoods.

Calgary’s relative affordability also extends beyond housing. With lower costs for everyday expenses such as gas and insurance, comparatively lower property taxes, and no provincial sales tax, the overall cost of living remains more moderate than in many other large Canadian cities.

Affordability: It’s Not All Relative

While Calgary real estate may be relatively affordable compared to other metropolitan centres, that does not necessarily mean it feels affordable for the average Calgarian household or first-time buyer.

When affordability is reduced to a simple comparison of average home prices between regional markets, important factors are often overlooked.

At the household level, affordability depends on:

• Income stability and growth potential

• Down payment capacity

• Existing debt obligations

• Interest rate sensitivity

• Long-term ownership plans

From this perspective, two families earning similar incomes can experience very different levels of financial comfort depending on savings, lifestyle choices, and risk tolerance.

Wages and Employment: The Real Pressure Point

Alberta continues to benefit from economic diversification across energy, industrial development, logistics, and technology. Employment growth remains a relative strength compared to many provinces.

Yet wage growth in the province has not kept pace with housing appreciation over the past several years. This is where affordability tension builds.

When incomes grow gradually, and home prices rise more quickly, housing becomes more expensive for residents, even if the city remains affordable compared to other metropolitan markets or is currently experiencing balanced conditions.

This dynamic is particularly noticeable for first-time buyers entering without existing equity, compared with move-up buyers who have accumulated appreciation and often experience the market differently.

Interest Rates: Predictable but Not Ultra Low

Borrowing costs have stabilized compared to the volatility of 2022 and 2023. That stability allows buyers to plan with greater confidence. Monthly payment projections are less exposed to sudden shifts.

However, rates remain higher than the historic lows experienced during 2020 and 2021. Even small differences in interest rates significantly impact purchasing power. A change of one percentage point can alter affordability more than many buyers anticipate.

Today’s environment is not as restrictive as the peak tightening period, but it still demands careful budgeting and realistic expectations.

Affordability by Property Type: Calgary’s Condo Question

Affordability also varies significantly by property type, and this is where Calgary’s market differs from those of some of Canada’s largest cities.

Detached homes typically require larger down payments and higher carrying costs. They have historically delivered stronger long-term appreciation in Calgary, supported by steady demand and the underlying value of land. The financial barrier to entry is higher, but the long-term performance has generally been more consistent.

Condos, by contrast, offer lower initial price points and can appear more affordable on the surface. For many first-time buyers, they represent the most accessible entry into homeownership. However, Calgary’s condo market has long been more sensitive to supply cycles. Unlike highly land-constrained cities such as Toronto or Vancouver, Calgary continues to add higher-density inventory at a steady pace. That ongoing supply can limit upward price pressure and reduce the long-term appreciation potential that some buyers expect.

Buyers considering a condo must account not only for mortgage costs, but also for condo fees, potential special assessments, and segment-specific supply conditions that can influence resale value over time. While condos may be cheaper upfront, they do not always offer the same promise of appreciation that detached homes have historically provided in this market.

So, Is Calgary Still Affordable?

We often tell clients that affordability is not a city-wide news headline. It is a personal calculation that must reflect your income, savings, debt levels, and the type of property you are considering.

Affordability in 2026 is not about chasing a market upswing or timing a correction. It is about sustainability. In a balanced market, prices may have stabilized, but that does not mean homes are inexpensive. The question is not simply whether Calgary is affordable in general, but whether a specific property type fits comfortably within your financial framework and long-term goals.

Stable prices and moderated demand create a more disciplined environment. That environment rewards buyers who:

• Understand their monthly payment limits

• Maintain liquidity after closing

• Stress test their budget against potential rate changes

• Align their property choice with their long-term financial goals

Final Thoughts: Affordability Is Personal

In 2026, affordability is less about what the market is doing and more about how your finances align with both current pricing and the type of home you choose.

If you are evaluating whether buying makes sense this year, the next step is not to focus on headlines but to review your numbers carefully. We would be happy to walk through current pricing, lending conditions, and how different property types may affect your long-term financial position.

Because in today’s Calgary market, affordability is not about comparison. It is about clarity, strategy, and confident decision-making.

Get in touch with us today!

Each year, the Calgary Real Estate Board (CREB®) releases its annual forecast to help homeowners, buyers, sellers, and investors understand where the market is heading.

The 2026 CREB® Forecast Report, prepared by Chief Economist Ann‑Marie Lurie, confirms what many Calgarians, and many of our recent clients, have already begun to observe on the ground: the market has shifted, moving away from the tight, seller‑driven conditions that defined much of 2022 through 2024.

Now firmly in a period of balanced-to-buyer-leaning conditions, the Calgary real estate market is being shaped by higher supply and more measured demand, which varies widely by property type.

So what does this mean for you? Follow along below, as we break down the most important takeaways from the 2026 forecast, and what they mean specifically for Calgary homeowners and investors.

The Big Picture: A More Balanced Market Takes Shape

Heading into 2026, Calgary’s real estate market is no longer being defined by urgency or scarcity. Instead, it is settling into more balanced conditions, a notable shift from the seller‑driven environment that characterized much of 2022 through 2024.

At a high level, two forces are driving this change: demand is slowing, while supply is steadily rising.

On the demand side, both population growth from record-high levels of immigration and employment gains are moderating, bringing buyer activity closer to long‑term averages. Sales are forecast at approximately 22,200 transactions in 2026, slightly below recent years (although not out of step with historical norms), reducing the competitive pressure that previously pushed prices higher.

At the same time, supply has expanded meaningfully. Across resale, new construction, and rental inventory, more homes are coming to market, particularly as projects started during the recent building surge enter the market. In 2025 alone, Calgary recorded over 26,000 housing starts, many of which are now adding to available inventory.

The forecasted impact on home prices is pretty straightforward: overall benchmark prices are expected to decline modestly in 2026 (‑0.9%), with notable variations by home type and market segment.

Looking at the Specifics: How Each Market Segment Is Affected

While the overall market is moving toward balance, the impact of these conditions, and what they mean for you, varies significantly by property type. Here’s how CREB® expects the major segments to perform in 2026:

Condos & Apartments face the most pressure. Inventory reached record highs in 2025, and additional supply from both new condo completions and purpose‑built rentals is expected to weigh on the segment again in 2026. CREB® forecasts apartment benchmark prices to decline by approximately 3.5%, with sales remaining below recent highs as rental availability improves.

Row Homes are also expected to see continued softening, though at a slower pace than apartments. CREB® forecasts an additional 1.9% price decline in 2026, largely driven by elevated inventory in certain districts. Well‑located and newer properties may outperform, but condition, pricing, and neighbourhood context matter more than ever.

Semi‑Detached Homes remain one of the more balanced segments. With limited new supply and steady demand, prices are expected to stabilize in 2026, with forecast growth under 1%. Variation by location and price point will continue, but overall conditions are healthier than in higher‑density segments.

Detached Homes continue to show the greatest resilience. CREB® expects sales to remain near long‑term averages, with benchmark prices essentially flat (+0.1%). While inventory has increased, demand has been strong enough to prevent real declines.

The Rental Market is also adjusting. Record levels of purpose‑built rental construction combined with slower migration have increased availability. With over 11,800 rental units under construction, vacancy rates are expected to remain elevated in 2026, placing downward pressure on asking rents.

The Economic Backdrop and What It Means for You

Most economists still anticipate that Alberta will outperform many provinces economically, supported by energy, petrochemicals, tech, and industrial investment. However, job growth and migration are slowing, and unemployment is anticipated to remain elevated in Calgary through 2026.

With inflation back near target, the Bank of Canada is expected to hold rates steady in 2026, keeping borrowing costs relatively stable, but not dramatically lower. This reinforces a broader theme running through the forecast: less momentum, more normalization.

For Calgarians, this environment doesn’t point to a market in trouble: it points to a market maturing.
Buyers benefit from more choice, less urgency, and greater negotiating power.

Sellers will find success through pricing accuracy, presentation, and strategy rather than timing alone.
Investors are rewarded for focusing on fundamentals: cash flow, tenant quality, and long-term planning.
In a balanced market like this, thoughtful decisions consistently outperform speculative ones.

Final Thoughts: A Forecast Is a Guide, Not a Guarantee

With any report, it’s essential to remember that a forecast is exactly that: a forward‑looking snapshot based on current data, assumptions, and economic conditions.

While CREB’s 2026 outlook provides a strong framework for understanding where Calgary’s market is headed, unforeseen factors, from global economic shifts and changes in interest rate policy to geopolitical events or unexpected changes in migration, can always influence outcomes.

That’s why the most effective real estate decisions aren’t made by reacting to headlines alone, but by understanding how broader trends intersect with your specific situation, property type, timeline, and financial goals.

If you’re wondering how the 2026 forecast applies to you, whether you’re considering buying, selling, holding, or investing, a personalized conversation can provide far more clarity than any general report.

We’re always happy to walk through the data for your property type and community, answer your questions, and help you make sense of what it means for your next move in Calgary’s evolving market.

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Source: CREB® 2026 Calgary & Region Yearly Outlook Report

If you’ve been following the Calgary real estate market this past year, you’ll have noticed the shift. After several years of rapid appreciation and bidding wars, Calgary’s red-hot housing market has eased towards more balanced conditions. Listings are sitting on the market longer, inventory has increased, and buyers now have more choices.

For many sellers, the current market conditions pose a difficult question: sell at a price that feels too low or rent the property until conditions improve?

For anyone who never planned to own an investment property, the idea of becoming a landlord can feel overwhelming. The good news is that with the right strategy, a crash course in property management and expert guidance when you need it, it can work to your advantage.

You Never Planned to Be a Landlord, But Don’t Be One Without a Plan

Accidental landlords are more common than you think. So, if you purchased your home without intending to rent it, rest assured, you’re not alone.

Regardless of how you ended up here, the path forward starts with a mindset shift. Instead of focusing on the factors that are out of your hands, such as market conditions, think of your condo as a business investment. This mindset shift helps you remain positive and proactive about factors you can control.

Before you list your property for rent, there are two non-negotiables every accidental landlord should know from the start:

 1. Know your carrying costs - Before choosing a price or screening tenants, you need to know your baseline monthly overhead. Make a list of and add up: mortgage, condo fees, property tax, insurance, any utilities you cover, maintenance reserve (5–8% of monthly rent, and vacancy allowance (1–2 weeks per year).

This number becomes your foundation. It tells you whether your priority is:

• breaking even,

• generating modest cash flow, or

• filling the unit quickly to avoid vacancy loss.

2. If you live in a condo, know your condo bylaws - Every condo corporation has its own rules for rentals, and failing to follow them can create headaches later. These rules shape your ideal tenant profile and determine what you can offer in your listing. 

Ensure you review:

• Minimum lease length (some buildings require 6–12 months)

• Move-in/move-out rules (elevator bookings, fees, access times)

• Short-term rental policies

• Tenant insurance requirements

Being sure about your carrying costs and condo bylaws (if applicable) upfront prevents missteps, eliminates surprises, and ensures your rental strategy is grounded in reality rather than guesswork, especially as you get ready to price.

Pricing Your Rental: Prioritize Strategy Over Guesswork

In today’s balanced rental market, overpricing guarantees longer vacancies. The goal isn’t the highest rent, it’s the best net return. This outcome stems from minimizing downtime and balancing against your carrying costs.

Here’s how to price effectively:

Start with data, not emotion. Compare similar units in your building or neighbourhood first, then expand to nearby listings.

Watch absorption, not just asking prices. If similar homes sit unrented after two weeks, the market is signalling that your price is too high.

Price within search bands. Dropping from $2,025 to $1,995 brings your listing into more filtered searches.

Present value, not just price. Bright lighting, fresh paint, and professional photos significantly reduce time on market. Also consider using ChatGPT to help write a compelling ad description.

Smart pricing blends market comparables, your carrying costs, and tenant psychology. One of the biggest mistakes many new or accidental landlords make is holding out for an extra $50–$100/month — and losing $2,000+ in vacancy.

Finding and Keeping Great Tenants

A great tenant pays on time, looks after your space, and saves you the significant cost of turnover advertising, cleaning, screening, and inevitable vacancy. They also shield you from stressful scenarios, such as late payments or dealing with the formal eviction process if things go sideways, which can quickly drain your time, energy, and patience.

To attract quality tenants:

• Lead with lifestyle. Highlight proximity to the C-Train, river pathways, and amenities; these factors matter as much as square footage.

• Consider pets (with deposits + references). Pet owners stay longer and treat homes like their own.

• Offer flexible terms. 12–18 months works well; shorter terms at a premium if you may sell soon.

Once you have a great tenant, prioritize retention. Renewal incentives such as fresh paint, updated blinds, or a minor appliance upgrade cost far less than turnover. Quick communication and timely maintenance also go a long way in building rapport and trust.

And remember: just because you can raise rent doesn’t mean you should. Most renters are operating within tight budgets. Keeping a reliable tenant at their current rate often produces a better long-term outcome than forcing a move for a nominal rent increase.

When to Call in the Pros

Managing a rental property can be straightforward — until it isn’t. Between potential condo bylaws, move-in bookings, lease compliance, maintenance, inspections, and tenant communication, professional management can save time, money, and stress.

A qualified leasing or management company will help you price your property accurately, market it with professional photography, handle showings, screening, and leases, manage rent collection, and, ideally, maintain strong tenant relationships.

If you prefer more control, a tenant placement service is a smart middle ground: they source and screen the tenant; you handle the rest.

Ultimately, the decision to hire a management company usually comes down to questions of cash flow and convenience. Suppose you forecast that your property will generate positive cash flow. In that case, you may forgo some of those profits for the convenience of having a company look after the nitty-gritty for you. If you’re crunching the numbers to break even, self-management will likely be the preferred choice.

Final Word: Turning Circumstance Into Strategy

Becoming an accidental landlord may not have been the plan, but with the proper structure and support, it can be a strategic bridge instead of a setback. Calgary’s current rental property demand remains steady, and well-managed homes and condos continue to attract stable, long-term tenants.

If you price thoughtfully, treat your tenant like a partner, and bring in help where it adds value, your “temporary” rental can quietly pay down your mortgage, protect your equity, and give you options when the market shifts again.

Thinking about renting your home or condo?

We’d be happy to talk through your options and connect you with trusted professionals who can help you move forward with confidence. Email us now. 

Preparing your home for Alberta’s winter climate isn’t just about staying warm — it’s about preventing costly surprises and protecting your real estate investment over the long term.

Whether you’re living in your home, managing a rental property, or preparing to sell your Calgary home this winter or in the early spring, winterization is one of the smartest seasonal investments you can make.

But winter prep doesn’t have to feel overwhelming. Not every maintenance task needs to be tackled at once, and not every improvement requires a high upfront cost. The key is understanding what matters most right now, what can be planned for later, and where your time and budget will have the most significant impact.

In this month’s blog, we break down winterizing your Calgary home into clear, manageable priorities so you can focus on the most cost-effective steps today while building a thoughtful plan for future winters ahead.

Short-Term Essentials: What to Handle Right Now

Always best to focus on the items that make the most significant difference right away. They’re generally low-cost, high-impact tasks that help prevent winter damage, improve efficiency, and reduce the risk of emergency repairs during the coldest months.

If you haven’t done any winter prep yet, start here.

Inside the Home
Focus first on heat, safety, and efficiency: the systems and features you rely on most once temperatures drop.

• Service your furnace. If it hasn’t been checked recently, an annual or bi-annual fall/early winter tune-up now can prevent mid-winter breakdowns and often improve efficiency and life-span while helping lower monthly utility bills.

• Change your furnace filter. This simple task improves airflow and indoor air quality, especially important if you have pets or allergies.

• Test smoke and carbon monoxide detectors. Winter brings increased furnace use and higher fire risk. Replace batteries or outdated units.

• Seal drafts around doors and windows. Weatherstripping and caulking help keep warm air in and cold air out.

• Reverse ceiling fans. Set them to rotate clockwise at a low speed to push warm air back down into living spaces.

Outside the Home
Outdoor winter prep is all about managing water and protecting your home from freeze-thaw damage.

• Shut off and drain exterior water lines and hoses. This helps prevent frozen or burst pipes.

• Blow out sprinkler systems. Any remaining water can freeze and crack underground lines.

• Clean gutters and downspouts. Clear pathways allow melting snow to drain away from your home, reducing ice dams and foundation issues (best done at the end of summer or early fall, but you can always wait for a sunny Chinook weekend in early winter months). Ensure all downspouts are directed away from the home, at least 4’ to 6’ or longer if possible.

• Inspect the roof from the ground. Look for missing shingles or apparent damage before snow accumulates.

• Prepare decks and patios. Sweep away debris and check that water still beads on the surface — a sign the sealant is doing its job.

Long-Term Winter Prep: Worth Planning Ahead

Not all improvements need to happen immediately and can deliver meaningful benefits over time, as you can chip away at them. Long-term winter prep focuses on efficiency, durability, and protecting your home from issues that often surface after the snow melts.

If you’re planning to stay in your home for several years — or thinking about resale down the road — these upgrades are worth building into your overall maintenance plan.

Inside the Home
Long-term indoor improvements often focus on reducing heat loss and managing moisture, two factors that significantly affect comfort, energy costs, and long-term condition.

• Upgrade or top up attic insulation. This is one of the most effective improvements for older homes in Calgary. Proper insulation reduces heat loss, lowers energy bills, and helps prevent condensation and ice dam issues. Additionally, ensure your attic is adequately sealed to avoid condensation and attic rain.

• Schedule professional duct cleaning. Especially worthwhile if it hasn’t been done in years, or if you have pets or allergies. Clean ducts improve airflow and system efficiency.

• Monitor basement moisture and insulation. Check for condensation, cold spots, or dampness along foundation walls. Addressing these early through insulation upgrades or dehumidification can prevent mold and structural issues.

Outside the Home

Exterior projects tend to be less urgent in the moment but play a big role in long-term protection.

• Inspect siding, flashing, and exterior seals. Look for cracks or gaps that could allow moisture or cold air intrusion. Minor repairs now can prevent expensive damage later.

• Plan for window upgrades if needed. Persistent drafts or condensation between panes often signal aging windows. If selling is on the horizon, start budgeting early.

• Inspect fireplaces and chimneys. For homes with wood-burning fireplaces or older chimneys, a professional inspection ensures everything is safe, sealed, and functioning correctly for winter use.

Special Considerations for Calgary Landlords and Future Sellers

If you’re renting your home or planning to list it in the coming months, winter prep becomes more than maintenance — it’s part of your positioning strategy.

A warm, draft-free home signals strong upkeep to both tenants and buyers. Small improvements, such as a smart thermostat, updated weatherstripping, or clear documentation of recent servicing, can add confidence and reduce friction during showings.

For sellers, a pre-listing inspection completed during winter can help identify issues early, before buyers or tenants uncover them themselves.

Final Thoughts: Calgary Winters Reward Prepared Homeowners

Winterizing your home isn’t about tackling everything at once. It’s about making intelligent, timely decisions that protect your property, reduce long-term maintenance costs, and improve comfort during Calgary’s coldest months.
Whether you’re staying put, renting out your home, or planning to sell in a future season, a thoughtful winter home maintenance plan can help you avoid surprises and protect your investment.

Need help deciding which winter upgrades will matter most for resale, or looking for trusted Calgary trades to help you prepare your home for winter?

The Trung Bien Real Estate Team is here to help you plan with confidence, season after season. 

Many buyers begin their home search with a favourite neighbourhood in mind, but once they discover what their budget can buy across different parts of Calgary, those priorities often shift.

Maybe that inner-city charm also comes with more maintenance and less space than expected. Or perhaps the comfort, increased square footage, and more expansive lots found in the suburbs don’t quite outweigh the longer commute and evolving infrastructure.

 This guide compares what $725,000 (the median Calgary home price) can buy in four key regions—the Inner City, Southeast Suburbs, Northeast Suburbs, and the Westside—to help you weigh your options against your budget and make an informed, confident decision about where to call home.

The Inner City

Where lifestyle leads and location is everything, Calgary’s Inner City offers unmatched convenience, walkability, and architectural character with opportunities for historical homes and new infills.

However, while charm and character may be a draw, options for $725,000 or under have narrowed in the inner city. Finding a detached home is increasingly rare at this price point, and many are future development lots in up-and-coming locations.

More realistically, $725K opens the door to an older semi-detached home or quality townhome in established communities. These homes, despite sacrificing on size, often offer updated interiors and low-maintenance living.
While you won’t typically find large yards or attached garages here, you’re gaining proximity to downtown, transit, restaurants, and future redevelopment value.

What $725,000 buys:

Size: ~800-1300 sq. ft. above grade
Bedrooms/Bathrooms: 2–3 bedrooms, 1.5–2 full baths
Garage: Detached single or double
Lot/Yard: Smaller lots (25'–30' wide), limited yard space
Interior: May include character features (e.g., hardwood, coved ceilings), older kitchens/baths, or basic renovations
Basement: Often finished, may offer office or rec space; ceiling height may be lower

Compared to the suburbs:

You’ll sacrifice interior space, newer finishes, and exterior lot size but gain a shorter commute, walkable amenities, and strong redevelopment potential.

The Southeast Suburbs

Where family-friendly design meets modern convenience, Calgary’s SE suburbs offer larger homes, open-concept layouts, family-oriented neighbourhoods, and newer builds tailored to everyday living.

At this price point, you’ll typically find an older 2-storey, 1,900–2,200 sq. ft. home with 3–4 bedrooms, an attached double garage, and upgraded finishes like granite counters and stainless appliances — all within a master-planned community.

What $725,000 buys:

Size: ~1,800–2,300 sq. ft. above grade
Bedrooms/Bathrooms: 3–4 bedrooms, 2.5–3 full baths
Garage: Double attached
Lot/Yard: 35'–40' wide lot, typically landscaped
Interior: Open-concept layouts, quartz/granite counters, stainless steel appliances, spacious primary suites
Basement: Generally undeveloped, but ready for future customization

Compared to the suburbs:

For approximately the same price, you’ll gain double the interior space, newer finishes, and attached garages at the cost of a longer commute to inner city amenities and newer (sometimes less mature) infrastructure.

The Northeast Suburbs

The quickly growing NE suburbs offer buyers more space and flexibility for their dollar, with larger homes and practical floor plans with possibilities for income-generating potential. Ideal for buyers who have extended or multi-generational families. Calgary’s NE delivers some of the best dollar-per-square-foot value in the city.

What $725,000 buys:

Size: ~2,000–2,400 sq. ft. above grade
Bedrooms/Bathrooms: 4–5 bedrooms, 3–4 full baths
Garage: Double or triple attached (varies by community)
Lot/Yard: 35'–40' wide, usually fenced and landscaped
Interior: Functional layouts, upper-floor laundry, spice kitchens, builder-grade or modest finishes
Basement: Frequently developed with legal or rentable 1–2 bedroom suites

Compared to SE suburbs:

With commute times similar to the southeast and other suburbs, you’ll often find more bedrooms and baths, potential rental income, and larger layouts. However, home finishes may be more practical than polished, and green space access can vary.

The Westside (North & Southwest Quadrants of Calgary)

Blending timeless appeal with established neighbourhoods, Calgary’s Westside delivers a refined balance of location, livability, and long-term stability. These communities often offer mature landscaping, moderately larger yard sizes, quality schools, and easy transit access.

What $725,000 buys:

Size: ~1,800–2,200 sq. ft. above grade
Bedrooms/Bathrooms: 3–4 bedrooms, 2.5–3 full baths
Garage: Double attached or detached
Lot/Yard: Larger, mature lots (~40'+), often landscaped with trees
Interior: A mix of original and updated finishes (e.g., granite counters, hardwood, vaulted ceilings), well-maintained
Basement: Typically developed with rec space, extra bedroom, and bath

Compared to SE/NE:

Expect slightly older homes and fewer square feet, but slightly more affluent and developed communities featuring established infrastructure, higher resale stability, quick access to schools, the LRT, and the mountains.

Final Thoughts

While $725,000 may be a set figure, what it can buy in Calgary varies greatly depending on the location. Each part of the city offers its own combination of lifestyle, features, and trade-offs, highlighting how much value is influenced by neighbourhood choice.

Every buyer has different needs, preferences, and priorities. By understanding how your money stretches in various areas, you can make a decision that fits both your current lifestyle and long-term goals.

Whether you're early in the process or ready to make a move, our team is here to support you with clear guidance and expert insight.

Reach out today to start your personalized home search and discover what’s possible.

Following “three days of meaningful and passionate public participation and debate with more than 160 residents and groups generously sharing their experiences” 1 about Calgary’s housing crisis, Calgary City Council approved an amended version of Home is Here - the City’s Housing Strategy for 2023-2030.

Despite the contentious nature of certain action items put forward in the strategy, there is no doubt Calgary, like other major Canadian cities such as Vancouver or Toronto, is in the midst of a housing crisis, and city officials needed to take action. 

But what does this action plan potentially mean for you? Your home? And our city?

Continue reading below to learn more about the action plan and why we, at Trung Bien Real Estate Team feel it’s an excellent first step forward in meeting the needs of our growing city. 

1 https://newsroom.calgary.ca/city-council-approves-housing-strategy-with-amendments/?utm_campaign=later-linkinbio-ward9grams&utm_content=later-37896866&utm_medium=social&utm_source=linkin.bio

What is driving the housing crisis?

No matter how you cut it, Calgary just doesn’t have enough housing to accommodate our city’s rapidly growing population. That shortage is causing home prices to rise, making housing even more unaffordable for the average Calgarian. 

To give you some statistical context on how serious the situation is, Tim Ward, Manager of Housing Solutions at the City of Calgary, stated that one in five Calgary households now can’t afford their housing, and one in ten Calgarians faces a real prospect of homelessness. 

Rental rates are up by as much as 25% in the last year, and the average price of a home increased 29% over the previous four years.

Not only is housing becoming more unaffordable — but there are no signs that population growth will slow, either. In fact, it’s estimated that interprovincial and international migration rates will continue at their current rate until at least 2027!

Long story short, if we don’t act, a bad situation is only going to get worse. 

What is the city doing about it?

In June 2022, the city created an affordable housing task force to investigate the housing crisis and generate a set of professional recommendations to guide the city’s response. 

The task force put forward a total of 33 recommendations centred around what we summarize are two key ideas: to drastically increase the number of non-market (affordable) homes available in Calgary and to make it 

easier to build new homes.

To increase the amount of non-market affordable housing, the action plan suggests that every Local Area Plan be required to ensure a minimum of 15% of the total housing units are non-market. To build new homes, the task force called for what urban planners commonly call upzoning. 

Upzoning is an alteration to a community’s zoning code to allow a new capacity for development. This practice, in turn, can increase supply and lower land costs. 

2 Read the full list of recommendations here: https://www.calgary.ca/social-services/low-income/housing-strategy/recommendation-5.html

What is RCG zoning, and why do people care?

Though upzoning is only a single component of the city’s action plan, it is undoubtedly the most controversial. It has garnered the most public interest and debate — explicitly concerning the recommended R-CG and H-GO zoning. 

What is RC-G and H-GO zoning? 

Currently, most residential land in Calgary is classified as R1 zoning, which doesn’t allow landowners to build anything other than single detached homes or a legal basement suite without going through lengthy permit and development processes. 

RC-G and H-GO are specific changes to Calgary’s residential zoning rules that simplify the process landowners must go through if they want to build single detached homes, duplexes, triplexes, backyard suites and rowhouses, opening many neighbourhoods up to more diverse forms of housing.  

Understandably, this has many Calgary homeowners worried about their homes’ long-term values and the density in their neighbourhoods in the years to come.

If you’re worried about RC-G zoning, here are a few things to consider.

It’s important to point out that even though RC-G zoning will apply to all Calgary neighbourhoods, this doesn’t mean we will see higher-density projects popping up everywhere ad infinitum. 

Fears voiced by many Calgary homeowners during the city council’s public consultation period that new zoning by-laws will drastically transform their neighbourhoods are understandable — but that doesn’t mean they’re totally legit. 

Redevelopment, like all development, has to make economic sense. Generally, redevelopment occurs in neighbourhoods that are closer to the city center, where the street network is in a grid system, back lanes are present and where there is high demand for new homes.3

Also, consider that RC-G will considerably reduce permit wait times in neighbourhoods where we already see demand for this type of development.  Zoning change allows us to build more houses in denser and densifying neighbourhoods while saving municipal tax dollars and resources consumed in permitting.

The reality is that, despite many single-family homeowners' concerns, redevelopment will be reasonably rare in communities where the majority of homes were built after 1970.4

3 https://www.calgary.ca/planning/projects/housing-choices.html
4 https://www.calgary.ca/planning/projects/housing-choices.html

Final Thoughts

While only one aspect of the city’s action plan, a part of what makes the proposed zoning changes feel so monumental is that our city itself is on the cusp of a historical shift. 

Moves toward zoning regulations that are, in fact, commonplace in other major North American cities are harder to swallow here because Calgary has so long been heralded as a mecca for detached single-family homeownership. 

It makes sense that folks who’ve lived here as long as I have feel resistant to new changes that might affect their neighbourhood. But the reality is that our city is changing and expanding rapidly, and if we are to accommodate that growth in the years to come adequately, we need to adjust. 

Increasing housing affordability doesn't just make housing more accessible to those who need it most; it is critical to supporting new job creation, attracting a reliable and stable workforce and promoting the demographic diversity our city needs to remain economically vibrant and strong. 

—

For an excellent summary and recap of the debates over the action plan, check out the Sprawlcast podcast here. 

Can you Imagine real estate brokerages conspiring to keep commission fees high? Never! Well, it took a Kansas City jury just under three hours to decide exactly that. 

Following a four-year legal battle, the National Association of Realtors (NAR) was found guilty of conspiring with two of the largest brokerages in the United States to keep commissions on home sales high, making them liable for $1.8 billion.  

Considering the rising costs of homeownership and high interest rates in most major North American cities, it’s not surprising this case has struck a chord here in Canada. In fact, a group of Toronto sellers is already attempting to sue several of Canada’s leading real estate brokers using many of the claims stipulated in the U.S. lawsuit. 

So, what do these lawsuits ultimately mean for Realtor fees in Canada? Are real estate agents paid too much? And what are some potential solutions moving forward?

The core of the issue

What’s important to understand is that what’s at issue here isn’t just real estate broker fees but also the process by which those fees are negotiated. 

In the U.S., as in Canada, when a homeowner decides to sell their home, they sign a deal directly with the seller’s (listing) agent, which also determines how much the buyer’s agent is paid.  In the U.S., commission fees are typically between 5-6% and split between the selling and buying agents without much consultation or input from the homeowner.

In this particular case, the prosecution successfully argued that because sellers are not able to negotiate directly with buyer agents regarding their fees, the commission rates are, in fact, collusionary — meaning they prohibit competition and keep rates artificially high. 

Are we comparing apples to apples?

Yes and no. 

Generally speaking, the real estate industries in the U.S. and Canada are very similar, especially in terms of the negotiating process for commission fees. However, our commission rates can differ from the U.S., depending on where you are in the country.

In Toronto, where we mentioned a similar lawsuit was in the early stages of development, average Realtor® fees are 5%, with an equal share going to the buying and listing agents. 

In Alberta, however, we have some of North America’s lowest commission fees, with the average rate slightly above 3.0%  (1.5 % for each agent). This is because our fees are structured differently. 

Here, sellers typically pay 7% on the first $100,000 and just 3% on the remainder. So, for a home valued at $545,998 (the average price of a Calgary home in October 2023), the total commission rate would be 3.7%. 

The 1.3% difference doesn’t sound like much, but on a $545,998 home, that equals around $5k in savings on total commission fees.  It’s also worth noting that all commission fees in Canada are, in fact, negotiable, and these are average rates based on typical scenarios.  

What’s next?

Regardless of where you live and the fees you’re paying, there’s no doubt innovation is on the way. 

Even though the NAR has indicated it will appeal the lawsuit, some brokerages named in the lawsuit have already demonstrated a willingness to be flexible with both fees and the process for negotiating them. 

A better system will likely emphasize the need for more transparency in the negotiation process. 

Some proposals include home buyers paying buying agents directly, conducting separate negotiations for buyer and seller commissions, or instituting variable (instead of fixed) commission rates. 

Does the need for innovation mean Realtors are overpaid? 

That’s a great question. 

From the seller’s perspective — I get it.  You just sold a home for $545,998. The $10,190 you paid to the buyer's agent seems astronomical, considering you probably never even met them: “They just got how much? For doing what?”

The feeling is understandable. 

Remember, however, that Realtors® are small business owners with overhead and operating expenses like any other business. 25-30% of every commission cheque goes to paying brokerage fees, marketing costs, services fees, gas, office space, etc.  

That’s not to mention that calculating the hours that go into earning commission fees is almost impossible, considering the countless phone calls, text messages, emails, driving hours, and personal interactions that go into every deal — especially in a low inventory market where agents are usually writing multiple offers to secure their clients home. 

So, what you see on paper isn’t really anything close to what the Realtor® takes home as net income.

Our thoughts?

It’s important to consider that while the system for deciding commission fees is due for a shake-up, that doesn’t necessarily mean the optimal outcome is the Realtor® being paid as little as possible. 

At TB Real Estate Team, we’re proud to say that most clients feel our moral support, insight, and expertise are intangible. They are happy to pay for the exceptional, turn-key style service only years of dedication and experience can provide.

If being a real estate was easy and purely transactional, it’s hard to fathom why 85% of real estate agents would give up on their real estate careers within the first five years. But that’s precisely what happens. 

Most aspiring real estate agents quickly discover that clients look to us to manage much more than their transactions. They are seeking our guidance, input, expert advice and counsel on one of the most important decisions of their lives. Our professional obligations to our clients extend well beyond dotting the ‘i’s and crossing the ‘t’s. 

There’s no doubt industries need to stay robust, competitive and fair.  Yet, suppose real estate commission fees were to drop precipitously. It would be hard to imagine buyers having the same level of access to professional, experienced, and qualified agents they do now. If faced with a lack of qualified Realtors, many buyers who are skeptical about fees may come to see the value in paying for good counsel when making one of the most significant purchases in their lifetime.    

At any rate, change is on the horizon. We are excited to see what this shake-up brings and look forward to adapting to shifting realities while continuing to provide the absolute best representation for our clients.