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Good Morning,
 
We hope this email finds you doing well as we settle into February, where our days are getting just a little bit longer and brighter. While we’re still in the thick of winter, the real estate market is starting to show signs of thawing, as we head into the early spring market.
 
In January, 329 homes were sold in Waterloo Region through the MLS® System, a 12% drop from last year and 18.6% below the 10-year average for the month. With nearly 50% more active listings than last January and inventory above the 10-year average. While sales have softened, higher inventory is creating more balanced conditions for buyers and sellers.
 
January Residential Sales – Waterloo Region
 
Detached Homes:
  • 188 sold (-10.5% YoY)
  • Avg. Price: $882,941 (-3.1% YoY, -1.2% from Dec)
Townhouses:
  • 81 sold (-8.0% YoY)
  • Avg. Price: $630,116 (-1.1% YoY, +0.1% from Dec)
Condos:
  • 39 sold (-30.4% YoY)
  • Avg. Price: $469,623 (+4.6% YoY, -1.2% from Dec)
Semi-Detached:
  • 21 sold (+5.0% YoY)
  • Avg. Price: $634,762 (-1.9% YoY, -1.6% from Dec)
 
Market Trends & Economic Factors
 
January saw 901 new listings, up 25% YoY and well above the 10-year average. Active inventory reached 1,296 listings (+49.5% YoY), with total inventory up 43.8%, pushing supply levels to 2.3 months. Condos had the highest supply (5.1 months), followed by townhouses (3.5 months) and detached homes (1.5 months).
Homes took an average of 33 days to sell, slightly faster than December’s 37 days but still above the five-year average of 21 days.
The Bank of Canada lowered its policy rate by 25 basis points to 3% on January 29, easing borrowing costs. Meanwhile, new mortgage rule changes introduced in December have made it easier to qualify for a mortgage with less than a 20% down payment. The insured mortgage cap also increased to $1.5 million, and first-time buyers and new-build purchasers now qualify for 30-year amortizations, reducing monthly payments.
 
2025 Housing Market Forecast – CMHC Outlook
 
CMHC projects moderate economic growth in 2025, with momentum building into 2026-2027. Lower interest rates are expected to stimulate home sales, though affordability challenges will persist in high-demand markets.
 
While a spring market rebound is anticipated, some buyers may wait for clearer rate-cut signals before making a move. Population growth and pent-up demand could drive sales higher later in the year. However, potential U.S. trade tariffs may introduce economic uncertainty, influencing inflation and housing affordability.
 
📖 Read the full CMHC report here
 
What This Means for Buyers & Sellers
Real estate remains a strong long-term investment, even in uncertain times. More inventory means buyers have increased options and less competition, while potential interest rate drops could create prime buying opportunities.
 
For sellers, homes that are strategically priced, well-prepped, and properly showcased are still selling well. With increased inventory, buyers have more choices, making it essential for sellers to stand out. A well-executed pricing and marketing strategy—paired with staging and strong presentation—can lead to faster sales and stronger offers even in a shifting market.
 
Economic factors like inflation and tariffs may influence daily costs, but historically, real estate weathers uncertainty better than most assets. Timing the market perfectly is impossible—the best time to buy or sell is when it aligns with your life and goals.
Thinking about making a move? Let’s chat and put the right strategy in place! 📩
 
Becky Deutschmann and Drew Dickinson
📞519-841-6511 | 519-500-2805
📧 becky@elitere.ca | drew@elitere.ca
🌐 www.elitere.ca
 
 
This lakefront estate in River Oak Estates spans over 9,100 SF of living space with 5 beds, 6 baths, a grand foyer, great room, chef’s kitchen, and a luxurious primary suite. The lower level features a home theatre and nanny/in-law suite. Outdoors, enjoy a pool, patios, an outdoor kitchen, and a lakefront gazebo. Prime location near Kiwanis Park, the Grand River, and top schools.
Perched above Bruce Lake, this 7.1-acre lakefront retreat offers 444’ of private shoreline and a boathouse with a top deck. The 2,000+ SF furnished bungalow features soaring timber ceilings with 4 beds, 2 baths, a wood-burning fireplace, and panoramic views. Expansive decks, a fire pit, and a boardwalk complete this private Muskoka escape, minutes from Rosseau and Port Carling.
This executive home offers 4,600+ SF of living space and features 3 beds, 4 baths, a grand foyer, gourmet kitchen, and luxe primary suite. The finished lower level offers a wet bar, wine display, office space, and rec room with in-law potential. Outside, enjoy a resort-style yard with a pool, putting green, and pool house, all near top schools, trails, and Grey Silo Golf.
CLICK THE PICTURES BELOW TO LEARN MORE ABOUT EACH LISTING
485 & 491 PARK STREET, 61 MT HOPE STREET, KITCHENER
1062 SNYDERS FLATS ROAD, BLOOMINGDALE
Exceptional Investment Opportunity
Building Lot
$2,099,700
$999,000
3-property package: 485 & 491 Park St + 61 Mt. Hope—$2,099,700 total. Fully occupied + potential 4th unit. Zoned I-2 & SGA-2 for redevelopment near Grand River Hospital, Uptown Waterloo & LRT. 
1.65 AC lot at Snyders Flats Estates, near the Grand River and nature preserve. Trails, ponds, and forests surround this serene spot, just 30 minutes from Guelph, Cambridge, Kitchener, and Waterloo.
614-101 GOLDEN EAGLE
ROAD, WATERLOO
213-101 GOLDEN EAGLE 
ROAD, WATERLOO
The Jake
The Jake
2 BED | 1 BATH | $520,000
1 BED | 1 BATH | $420,000
This 730 SF SE-facing corner unit features 2 beds, 1 bath, 9’ ceilings, and a balcony with city views. Amenities include a fitness studio and resident lounge, all near shopping, transit, and Uptown Waterloo.
542 SF 1-bed, 1-bath unit with 9’ ceilings, oversized windows, city views, balcony, in-suite laundry & parking. Amenities include a fitness studio & lounge. Steps from Starbucks, Sobey’s, transit & more!
807-60 CHARLES STREET WEST, KITCHENER
Charlie West
1 BED + DEN  | 1 BATH | $420,000
764 SF, 1-bed+den, 1-bath, south-facing condo unit with a balcony. Open layout, floor-to-ceiling windows, in-suite laundry & nearby top amenities. Steps from LRT & downtown!
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The federal government’s proposed capital gains tax increase has been delayed until January 1, 2026, giving real estate investors, business owners, and property sellers more time to plan. Originally set for June 25, 2024, this change will increase the taxable portion of capital gains from 50% to 66.67% for corporations, trusts, and individuals with gains exceeding $250,000 annually.
Key Takeaways:
  • Current 50% inclusion rate stays until 2026 – no need to rush asset sales.
  • Higher rate applies only to gains over $250K for individuals – but corporations and trusts will see the increase on all gains.
  • Other tax changes remain in effect:
    • Lifetime Capital Gains Exemption (LCGE) rises to $1.25M on June 25, 2024.
    • Canadian Entrepreneurs’ Incentive (effective 2025) lowers the tax rate on certain business sales.
What This Means for You:
 
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When preparing to sell, it’s tempting to think big renovations will bring in top dollar. While some updates can add value, others end up costing more than they’re worth. Before you start tearing things apart, consider these 3 home renovations that rarely pay off when listing your home.
1. Over-the-Top Kitchen Remodels
A modern kitchen can be a major selling point, but a full remodel can cost tens of thousands of dollars without guaranteeing a return. Buyers love updated kitchens, but they also want to make the space their own. Instead of replacing everything, focus on cost-effective updates like fresh paint, new hardware, upgraded light fixtures, and resurfaced cabinets. These small changes can make the kitchen feel refreshed without breaking the bank.
2. High-End Bathroom Upgrades
Bathrooms are another key selling feature, but overhauling them with luxury finishes isn’t always worth it. Custom tile work, high-end vanities, and designer faucets can add up quickly. While buyers appreciate a clean and modern bathroom, functionality matters more than extravagance. A deep clean, re-caulking, fresh grout, updated fixtures, and neutral paint can go a long way in making the space look move-in ready.
3. Expensive Landscaping & Hardscaping
First impressions matter, but spending a fortune on landscaping won’t necessarily boost your home’s value. Custom stone pathways, elaborate gardens, or water features may look beautiful, but they aren’t a priority for most buyers. Instead, keep it simple—a well-maintained lawn, trimmed shrubs, fresh mulch, and seasonal flowers can enhance curb appeal without the heavy price tag.
Where Should You Invest Instead?
If you’re preparing to list, focus on updates that make the biggest impact for the lowest cost. Fresh paint, good lighting, deep cleaning, and small repairs can transform a space without draining your budget. Buyers want a home that feels well-maintained and move-in ready, not one that’s been remodeled in someone else’s style. 
 
Thinking about selling? Let’s connect to make sure you’re investing in the right areas to get the best return on your home.
 
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The real estate market is always filled with noise. Just think back to when COVID first hit—many expected a market crash, yet we saw one of the biggest real estate booms in history. Now, with new U.S. tariffs on the horizon, conversations around inflation, interest rates, and economic shifts are making headlines again. But here’s the big picture:
Real Estate Remains a Smart Long-Term Investment
Despite economic fluctuations, real estate continues to be one of the most reliable ways to build wealth. Unlike stocks, which can swing wildly, real estate offers stability and serves as a hedge against inflation. Owning property means owning a tangible asset that historically appreciates over time.
More Inventory Means More Opportunity
With listings up 24.7%, buyers now have more choices and less competition. This shift creates a more balanced market, where negotiations are back on the table, and buyers can take their time finding the right property instead of rushing into bidding wars.
Interest Rates May Drop
Interest rates have been a major factor in the market’s slowdown, but with potential rate cuts on the horizon, borrowing could become more affordable in the coming months. Lower rates often mean more buying power, making it a strategic time to enter the market before competition heats up again.
You Can’t Time the Market
 
 
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83 Erb Street W
Waterloo, ON N2L 6C2, Canada