Edmonton Real Estate Market Update: June 2025 Insights and a Deep Dive into CMHC MLI Select

Welcome back to the AOF Real Estate Team's monthly update! This July, we're diving into the latest happenings in the Edmonton real estate market for June 2025, offering our expert analysis and on-the-ground perspectives. Plus, we're thrilled to share a valuable conversation with Matt O'Rourke from Green Birch Capital, demystifying the CMHC MLI Select program for investors.

June 2025 Edmonton Market Snapshot: Steady Growth Amidst Seasonal Shifts

Kellen Kunic kicked off our roundtable discussion with Alona and Kevin, and the numbers paint an interesting picture. While we saw a slight dip in sales month-over-month (2.8%), the overall market remains active with year-over-year sales figures showing positive growth. More people are actively searching for properties compared to last June, indicating continued buyer interest in the Edmonton region.

Inventory remains tight at just 2.4 months, reinforcing the current seller's market conditions. This means it's still a favourable time for those looking to sell across all property types. We're observing steady and rising prices, particularly when comparing year-over-year data.

Key takeaways for sellers:

• Strong pricing, especially for detached homes and townhouses.

• Faster sales with lower days on market.

• Limited inventory reduces competition.

• However, June saw slightly fewer new buyers entering the market, potentially a seasonal trend.

Insights for buyers:

• Greater choice in listings compared to last year.

• Prices are trending upwards, and inventory is limited, meaning less room for lowball offers.

• Competition persists, especially for detached homes under $600,000.

Kevin brought his boots-on-the-ground experience to the conversation, highlighting the typical summer slowdown in Edmonton. From July to mid-August, the market often sees reduced activity as residents take advantage of the beautiful summer weather and travel. This can create opportunities for buyers as some sellers may become more flexible on price due to lower showing activity. Conversely, it's generally not the prime time to list a property for sellers looking for maximum exposure. However, as Kevin pointed out with a recent successful condo listing, deals can still happen in any market. He suggests that mid-August through October tends to be the second busiest period in our market.

We also emphasized that this quieter period offers an excellent opportunity for both buyers and sellers to strategize and connect with the AOF team to understand the broader market landscape and determine the best course of action for their individual circumstances.

The Rise of Savvy Buyers and the Importance of Affordability

Alona highlighted a crucial trend: buyers are becoming increasingly savvy, with affordability playing a significant role in their decision-making process. The demand for properties with income suites is on the rise as buyers look for ways to offset mortgage costs. We're seeing a shift where even homeowners selling properties without legal basement suites are actively seeking their next purchase to include this income-generating potential. This trend, already prominent in markets like Toronto and BC, is gaining significant traction in Edmonton.

Kevin echoed this, noting that the most affordable options in the single-family dwelling and income property categories are moving quickly. While the "nicest" and most expensive homes might take a bit longer to sell, affordability is definitely winning in the current market.

Demystifying CMHC MLI Select: An Interview with Green Birch Capital

A significant portion of our podcast this month featured an insightful interview with Matt O'Rourke from Green Birch Capital. For investors looking at multi-family properties, understanding the CMHC MLI Select program is crucial. Matt provided a comprehensive overview, explaining how it differs from conventional commercial financing.

Key takeaways from the MLI Select discussion:

• Mortgage Default Insurance: CMHC provides insurance that protects lenders, allowing them to set aside less capital, which translates to benefits for borrowers.

• Lower Pricing & Longer Amortizations: MLI Select typically offers about a 1% discount on interest rates compared to conventional financing and allows for significantly longer amortization periods (up to 50 years), improving cash flow.

• Qualification Process: Matt broke down the qualification process into two main components: the ownership group's net worth (at least 25% of the requested loan amount) and the property's income-generating potential.

• Social Outcomes: The MLI Select program requires properties to meet certain social outcomes related to affordability, energy efficiency, or accessibility to access the most favourable terms (up to 95% leverage and 50-year amortizations). In Edmonton, affordability (rents at or below $1,665/month) has been a key driver for achieving these benefits.

• Recent Policy Changes: Matt clarified recent updates regarding the definition of multi-family properties and the requirements for secondary suites, particularly around utility setups and access to mechanical rooms. He assured listeners that many builders, including those we partner with, are already aligning with these requirements.

• Misconceptions: We addressed common misunderstandings about MLI Select, emphasizing that while high leverage is possible, it's ultimately dependent on the property's income and current interest rates.

• Comfort Letters: For new construction projects with longer timelines, Green Birch Capital provides "comfort letters" to give clients a realistic range of potential mortgage outcomes based on their financial situation and the property's projected performance.

We are proud to partner with experienced professionals like Matt and Green Birch Capital to help our clients navigate the complexities of commercial financing and leverage opportunities like the MLI Select program. As Kevin aptly put it, for those who qualify, it can be the "best financing in the world," allowing investors to scale their portfolios more efficiently.

Unique Opportunities in Edmonton's New Construction Market

Kellen highlighted some exciting opportunities in Edmonton's new construction sector. While pre-construction timelines can often extend beyond a year, we currently have projects nearing completion (Q3 and Q4 2025). This presents a unique chance for investors to deploy capital and see returns much sooner than typical pre-construction developments. These projects also often align well with the CMHC MLI Select program, offering attractive financing options.

If you've been strategizing or waiting for the right opportunity, now might be the time to connect with the AOF Property Solutions team. We can help you explore these unique projects and connect you with trusted mortgage brokers to understand your financing options.

Looking Ahead

As we move further into the summer months, we encourage everyone to stay informed about market trends and consider how the seasonal shifts might impact their real estate goals. Whether you're thinking of buying, selling, or investing, the AOF Real Estate Team is here to provide expert guidance and support.

Thank you for tuning in to our July update. We look forward to bringing you more insights next month! In the meantime, if you have any questions or would like to discuss your real estate needs, please don't hesitate to reach out.

Happy July, Edmonton!

The AOF Real Estate Team