Market Overview: Still Hot with Low Inventory

The Greater Edmonton Area continues to experience a hot real estate market with approximately 1.9 months of inventory, firmly placing us in a seller's market. Prices are up across almost all property types, with only semi-detached homes showing no increase since last month.

To put this in perspective, Q1 of 2025 has the second-lowest inventory levels we've seen since Q1 of 2022. The market has been consistently hovering around 2-2.4 months of inventory for about a year now.

Two Market Stories: Homeowners vs. Investors

There are two distinct stories playing out in the Edmonton market right now:

Homeowner Market

Properties under $450,000 are seeing tremendous activity, with detached homes, semi-detached, and townhouses moving within days of listing. Buyers in this segment are keeping their parameters wide open due to the competitive nature of the market.

Investor Market

Unlike last year when investor properties were moving quickly, we're currently seeing investors taking a more cautious approach. Many are sitting on the sidelines due to uncertainty around tariffs and the recent federal election.

Affordable Housing in High Demand

Town houses, half duplexes, and properties without income suites are moving extremely quickly in the current market. If you own one of these property types, now might be an excellent time to find out what your home is worth.

A Window of Opportunity for Savvy Investors

The current pause from investors creates an exciting opportunity for those looking to get ahead of the curve. With less competition for income properties, buyers have more choices and better control over pricing compared to just a few months ago.

Regardless of the political landscape, Alberta remains Alberta—the province continues to attract newcomers and boasts the highest average annual incomes. These fundamentals aren't changing overnight, but once investor confidence returns, the market could become much more competitive.

As one of our agents put it: "When investors come back, it's going to be a zoo again. If I were you, I'd be really actively pursuing deals right now because there's definitely some diamonds in the rough."

Emerging Trend: Homeowners Seeking Income Properties

An interesting development we're seeing is more homeowners (not just investors) looking for properties with legal basement units. At a recent open house in Cord (West Edmonton's hottest neighborhood last year), most attendees were homeowners interested in having income-generating suites, either because they currently have tenants or because family members are looking for similar properties.

This represents a shift in Edmonton, which has traditionally lagged behind other major markets like Vancouver and Toronto where homeowners commonly seek properties with income suites.

The financial benefits are significant—having an income-generating property can substantially improve mortgage approvals, allowing buyers to qualify for more expensive homes. This means investors are now competing with primary home buyers for properties with secondary suites.

Multi-Family and Commercial Properties

The commercial multi-family market is experiencing extremely tight inventory with fast-moving sales. Compared to a year ago when dozens of properties were available at any given time, the current market has very little inventory, and what does come on the market sells quickly. This trend extends beyond Edmonton into surrounding submarkets and central Alberta.

For investors interested in multi-family properties, new construction off-market deals present an attractive alternative to the competitive resale market. These purpose-built properties are designed to maximize the value of MLI select financing, often requiring less money down and offering favorable terms including property management support.

When looking at existing multi-family properties, investors often face challenges with MLI select financing timelines, as many sellers are reluctant to accept offers with these conditions. New build multi-family properties provide a more straightforward path for using MLI select financing compared to existing properties, which might require bridge financing followed by refinancing.

Looking Ahead: Interest Rates and Market Dynamics

The Bank of Canada's overnight rate decision is scheduled for Wednesday, with expectations pointing to a pause similar to the 90-day pause on tariffs. Market analysts anticipate another 50 basis points decrease by the end of Q3, meaning rates could go down again over the next six months.

However, waiting for rates to drop might not be the best strategy. If rates decrease and political uncertainties resolve, we could see a flood of investors and buyers entering the market, creating more competition, driving up prices, and further tightening supply.

Our team is committed to helping you navigate these market conditions, whether you're looking to buy, sell, or simply understand your options.

Final Thoughts

We're also seeing more Canadian investors who are hesitant about the U.S. market right now, which could mean more investment capital staying in Canada. As one of our agents noted, "Times of uncertainty are where you can get the biggest wins. Really paying close attention and taking a leap of faith can pay huge dividends."

Whether you're ready to sell now or just want to know what your property is worth, the AOF Real Estate Team is here to help. There's no rush—we're happy when our clients are happy with their properties—but having a ballpark figure of your home's value is always good information to have.

The AOF Real Estate Team is a full-service solution built to support you at every stage of your real estate journey. Whether you're building wealth through strategic investments, need hassle-free property management, or want to maximize your sale price, our dedicated client success team ensures your experience is seamless from start to finish. At AOF, we make real estate simple, profitable, and stress-free.

For more information or to schedule a consultation, contact us today.

https://www.aofteam.com/contact