Welcome to the February edition of our AOF Real Estate Team roundtable discussion! This month, we dive into the latest market stats, investment trends, and key takeaways for buyers and sellers in Edmonton and surrounding areas. Joining the discussion are Heather, Drew, Kevin, and myself as we break down the numbers and share our expertise on what’s happening in the real estate market.

Market Overview: Strong Growth and Low Inventory

One of the most notable stats this month is the 10% year-over-year increase in average selling prices across all property types. This significant rise reflects the ongoing demand in the market. However, the more critical factor driving this growth is the 18.2% decrease in inventory over the past year. With fewer listings available and continued demand, we are seeing a competitive environment where sellers have an advantage.

For property owners who have been waiting for the right time to sell, now is an excellent opportunity. With high buyer demand and lower interest rates continuing, our team can provide a market analysis to determine whether this is the right moment for you to capitalize on these conditions.

Investor Insights: Off-Peak Sales and Quick Closings

Despite being in the winter months, we’ve seen strong investor activity. For example, one of our clients listed two properties in early January, and both sold within two weeks at a profit from their purchase price two years ago. Low inventory levels have led to quick sales, even during what is traditionally considered an off-peak season.

Drew shared key insights into the different property types currently on the market:

• Single-family homes: 2.6 months of inventory, bordering on a seller’s market.

• Townhouses: 1.6 months of inventory, strongly favoring sellers.

• Apartments: 4.1 months of inventory, down from over five months last year, signaling increasing demand.

With condos seeing a 36% increase in sales year over year, apartment owners who struggled to sell in previous years should consider listing their properties now, as demand is catching up to detached homes.

Navigating Different Seller Strategies

In today’s market, we are seeing three types of sellers:

1. High-pricing sellers: Listing at premium prices and willing to wait for the right buyer.

2. Flexible sellers: Pricing aggressively but open to negotiation.

3. Competitive sellers: Pricing lower to drive multiple offers and create bidding wars.

Each approach has its pros and cons, and our team is here to help clients find the best strategy based on their goals and market conditions.

Current Events: Economic Factors and Market Outlook

One of the hot topics in the news is the potential impact of tariffs and economic policies on the Alberta market. While uncertainty exists, the reality is that Alberta’s economy remains resilient.

A key factor benefiting our market is the influx of out-of-province buyers, with 80-85% of our buyers coming from other regions. Alberta is increasingly being recognized as an attractive investment hub due to its affordability and economic potential.

As Kevin mentioned, Alberta’s energy resources are becoming a national focus rather than just a provincial one, which strengthens investor confidence and opens up new opportunities for growth. While media narratives may fluctuate, the fundamentals of Edmonton’s real estate market remain strong.

AOF Advantage: Full-Cycle Real Estate Support

At AOF Real Estate Team, we pride ourselves on providing a comprehensive approach to real estate. We don’t just help clients buy properties—we support them through the entire cycle, including:

• Investment strategy development

• Property acquisition

• Construction planning

• Asset management

• Tenant placement and property management

• Exit strategies and resale guidance

Our internal Property Solutions team has been instrumental in filling rental units quickly, even in the cold winter months. Investors who closed on properties in December have successfully secured tenants above projected rent values, reinforcing the strength of the Edmonton rental market.

Looking Ahead: What to Expect This Spring

With inventory levels low and demand remaining high, we expect continued market activity leading into the spring. Some key trends to watch for include:

• Continued low supply driving price increases

• Increased competition in both resale and rental markets

• More interest from out-of-province investors

• Government policies impacting buyer and seller strategies

If you’re considering buying, selling, or investing, now is the time to strategize. Even if you're not ready to make a move immediately, staying informed and connected with our team will help you be prepared when the time is right.

Final Thoughts: Stay Informed and Take Action

As we wrap up this month’s discussion, our advice remains the same—stay informed and stay proactive. Whether you are a first-time buyer, a seasoned investor, or looking to sell, the current market conditions offer plenty of opportunities.

We encourage you to reach out to us at AOF Real Estate Team for personalized guidance on how to navigate the market. Whether you’re looking for a market analysis, investment advice, or rental property support, we’re here to help.

Stay tuned for next month’s update, and as always, if you have any questions, don’t hesitate to reach out!

Contact us today to discuss your real estate goals!

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