AOF Real Estate Team: 2024 Review and 2025 Forecast

Happy New Year! While we're a bit past the start of 2025, it’s a great time to reflect on 2024 and share our insights into the Edmonton real estate market, as well as provide some forecasts for the year ahead.

2024: A Year of Surprises and Growth

2024 was a remarkable year for the Edmonton real estate market, exceeding initial predictions.

• Resale Multi-family Market: The resale multi-family sector saw the most activity and competitiveness, with very low inventory and prices consistently rising. Multiple offers were common, and sellers were achieving their asking prices.

• Single-family Market: The single-family home market also experienced low inventory, which is expected to push prices higher, particularly in the spring.

• Price Growth: The Realtor Association of Edmonton initially predicted a 1% increase in house pricing for 2024. However, the actual increase was closer to 12.5%.

Market Trends

• Low Inventory: Inventory levels are at a record low, creating a seller's market where demand is high and supply is limited.

• Multiple Offers: Multiple offers are common, even on listings that go live just before holidays, indicating strong buyer demand.

• Rising Prices: The low inventory and high demand are driving prices up. In Edmonton, the average home price is around $475,000, while other major markets can be closer to $1.3 million.

• Rent Increases: Despite some previous rent increases being considered unsustainable, current rent increases are expected to continue to inch upwards. Edmonton remains an affordable major market in Canada. In 2024, Edmonton rents increased by 2.7% while major markets like Toronto, Vancouver and Calgary saw decreases of 7.1%, 5.8% and 7.2% respectively.

2025: What to Expect

• Continued Price Increases: The Realtor Association of Edmonton predicts an 8% increase in house prices for 2025.

• Interest Rates: With residential interest rates for buyers on promotional rates under 4% there is expected to be an increase in buyers entering the market.

• Increased Demand: Many people are moving to Edmonton due to its affordability compared to other markets. Combined with lower interest rates and rising rental costs, many renters are expected to become buyers.

• Off-Market Deals: AOF Real Estate Team specializes in off-market deals, allowing buyers to avoid multiple offer situations and secure properties with pre-negotiated prices.

• AOF Property Solutions: The AOF Real Estate Team has invested in property management solutions, offering a full suite of services through acquisition, management, and disposition.

AOF Real Estate Team: Your Partner in Real Estate

• Client Success: We've enhanced our client support by focusing on a collaborative approach. Our team is dedicated to supporting you through every step of your investment journey, from acquisition to property management and disposition.

• Experience and Expertise: Our team has a proven track record, with over 500 rental doors acquired in 2024, totaling nearly $140 million in real estate.

• CMHC MLI Select Financing: We have 2+ years of experience with CMHC MLI Select financing, providing our clients with the expertise they need to navigate the complexities of this financing option.

• Long-Term Investment: We focus on long-term returns, not just the initial purchase.

Why Choose AOF Real Estate?

• Comprehensive Support: We provide a complete suite of services from acquisition to disposition.

• Off-Market Opportunities: We offer access to off-market deals, avoiding the stress of multiple offer situations.

• Client-Focused Approach: We prioritize your success and provide collaborative support throughout your investment journey.

• Experienced Team: Our experienced team provides the expertise you need to succeed in the current market.

We’re excited about the opportunities 2025 holds and are here to help you navigate the market and achieve your real estate goals. If you're considering investing in real estate, please reach out! Our team is ready to help you.

Final Thoughts

And, just for fun, we're predicting that the Edmonton Oilers will win the Stanley Cup this year! If that happens, expect those real estate prices to rise even higher!

Contact us today to learn more about how we can assist you.

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