August Real Estate Update

Good Morning,

We hope you’re enjoying these last few weeks of summer! Below is a breakdown of the latest trends to help you stay informed and make confident decisions.

Key Takeaways:

• 644 homes sold in Waterloo Region in July – flat year-over-year but 14.3% below the 10-year July average.
• Average sale price: $735,082 (down 6% year-over-year and 5.7% from June).
• Time to sell: 32 days on average (longer than June and July 2024, signaling a more balanced market).
• Nationally: Canadian home sales rose for the fourth straight month, up 3.8% from June, but CREA has cut its 2025 forecast again, expecting a rebound in 2026.

July 2025 Market Update – Waterloo Region:

In July, 644 homes were sold in Waterloo Region through the MLS® System, matching last year’s level but 14.3% below the 10-year July average. Sales volumes were steady year-over-year, but prices continue to adjust. With the Bank of Canada holding rates steady, increased inventory, and moderating prices, buyers have more opportunities, though broader economic uncertainty continues to weigh on confidence.

By property type:

• Detached: 383 homes sold (up 0.5% from July 2024) at an average price of $857,579, down 6.2% year-over-year and 4.5% month-over-month.
• Townhouses: 123 sales (down 5.4%) at $603,245, down 2.8% year-over-year and 3.5% month-over-month.
• Condos: 80 sales (down 3.6%) at $415,559, down 16.7% year-over-year and 4.4% month-over-month.
• Semis: 55 sales (up 14.6%) at $644,930, down 3.3% year-over-year and 0.6% month-over-month.

The average residential sale price in Waterloo Region was $735,082, down 6.0% year-over-year and 5.7% from June.

New listings: 1,356 were added in July, down 3.1% from last year but 21.2% above the 10-year July average.

Days on market: Homes took an average of 32 days to sell, up from 27 in June, 22 in July 2024, and a five-year average of 17 days.

Longer days on market highlight a shift toward balance—buyers have more time to make informed decisions, while sellers are adjusting expectations.

National Context:

Nationally, home sales rose 3.8% in July, marking the fourth consecutive monthly increase and sitting 6.6% higher than a year ago. Sales have climbed 11.2% over the past three months, with the GTA leading the rebound (+35.5% since March).

The national benchmark price slipped 0.2% month-over-month to $979,000 (down 5.5% year-over-year), while the average price edged up 0.6% annually to $672,784.

Inventory is steady month-over-month, but active listings are up 10% year-over-year, with the sales-to-new listings ratio rising to 52%—a sign of tightening conditions.

Still, CREA cut its 2025 forecast for the second time this year, now projecting sales will fall 3% from 2024 with prices dipping 1.7% to $677,368. Economists believe the rebound forecast for early 2025 has only been delayed by a few months. By 2026, CREA expects a 6.3% sales rebound and a 3% price increase.
(Source: The Globe and Mail)

What This Means for Waterloo Region:

Waterloo Region is moving in step with these national patterns: sales activity is steady, but prices are adjusting, and homes are taking longer to sell. Buyers benefit from more choice and time, while sellers must align with today’s market realities.

As buyer confidence rebuilds and affordability pressures gradually ease, the local market is expected to follow a healthier, more sustainable pace through the fall and into 2026.

Buyer & Seller Tips in Today’s Balanced Market:

For Buyers:
• Take advantage of longer days on market—you have more time to view properties, compare options, and negotiate.
• With more inventory available, consider exploring neighbourhoods you may not have looked at before.
• Secure a pre-approval so you’re ready to act quickly if the right home comes up.

For Sellers:
• Price strategically—today’s buyers are value-conscious and comparing closely across listings.
• Invest in staging and professional marketing to stand out in a market with more choice.
• Be flexible on negotiations; small concessions can help secure a deal faster.

Ready to Make Your Next Move?

Whether you’re thinking of buying or selling, now is a great time to start planning. Buyers benefit from more choice in today’s balanced market, while sellers can get ahead by preparing early.

If you’re considering a fall or winter sale, be sure to capture exterior photos while the summer weather is still at its best—they’ll make a big difference when it’s time to showcase your home.

Reach out anytime—we’d be happy to discuss timing, strategy, and next steps.

Becky Deutschmann & Drew Dickinson

The Deutschmann Team | RE/MAX Twin City

www.elitere.ca | 519-841-6511

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Featured Listings

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Designing a backyard you love isn’t as simple as picking a few plants and laying down a patio. Before you commit time and money, it’s important to know which choices actually add value to your home—and which could hurt it. A well-planned and well-maintained outdoor space can make your property far more appealing, while poor design decisions can have the opposite effect.

Too Much Concrete

Covering your backyard entirely with concrete may seem low-maintenance, but it can create heat islands, cause drainage problems, and make the space feel less welcoming. Many buyers see it as an issue they’ll eventually need to fix. A better approach is to combine hardscaping with greenery. This not only improves drainage but also adds depth, colour, and texture to the yard, making it more functional and visually appealing.

Overgrown Vegetation

While lush landscaping is attractive, an overgrown yard with mismatched plants can make a property feel neglected. Dense, untamed bushes or trees planted too close to the house can also raise concerns. A more effective strategy is to choose low-maintenance, native plants arranged in a cohesive design. Defined edges, organized beds, and a few standout plants create a stronger impression.

Poorly Placed Fire Features

Fire pits and outdoor fireplaces are a great addition, but location matters. Placing them too close to the house, trees, or neighbouring properties can be a safety hazard—and buyers may see it as a liability. Ideally, fire features should be positioned at least 10 feet from any structure or overhanging branches, with wind direction considered. A thoughtfully designed fire area with comfortable seating can also make the space more inviting.

DIY Water Features

Homemade fountains or ponds can be a red flag for buyers, often signalling future maintenance issues or mosquito problems. In some cases, buyers request that these features be removed before purchasing. If you want a water feature, invest in a professionally installed option with a recirculating system. Clean, modern designs that require minimal upkeep can enhance a yard’s appeal, while poorly executed DIY versions can reduce interest.

Overly Personal Décor

Adding personal touches is part of making a backyard feel like your own, but highly specialized permanent features can limit buyer interest. Built-in trampolines, themed play areas, or niche structures may not appeal to the average homeowner. Instead, opt for versatile upgrades like a well-designed patio, quality outdoor lighting, and evergreen landscaping. These elements offer broad appeal, work in all seasons, and can boost property value when it’s time to sell.

Full article linked here

In a shifting market like we’re seeing now, the decision of whether to buy before selling isn’t one-size-fits-all. Here are five essential questions to consider before making your move:

1. Can you carry 2 mortgages? What if the appraisal comes in low?

With higher interest rates and tighter stress-test rules, most buyers can’t qualify to hold two mortgages at once. Even if you can, the payments may be uncomfortably high. Bridge financing is sometimes available, but typically only if your current home is firmly sold.

Another risk: if the appraisal on your new home comes in below the purchase price, your lender may reduce the approved mortgage amount. That could leave you scrambling to cover the difference in cash, especially if your current home hasn’t sold yet.

2. Are there enough options in your desired price range?

Inventory in the Waterloo Region has improved compared to recent years, giving buyers more choice and time to decide. If you’re targeting a very specific neighbourhood or property type, securing your next home first may protect you from being left with fewer options later. A real estate professional can help you weigh current inventory against your goals.

3. How quickly is your current home likely to sell?

Homes are taking longer to sell—averaging about a month on the market—so it’s important to be realistic about timing. If your property is well-staged and priced correctly, you may move quickly. But if you’re in a more competitive segment, prepare for a longer process and factor that into your plan.

4. Would buying first ease the stress of your move?

For some, securing the next home upfront reduces the pressure of lining up closings perfectly. It allows you to move at your own pace and avoid temporary housing. For others, the uncertainty of carrying two properties is more stressful. Think about which scenario feels more manageable for you.

5. Do you have a plan if your home sells sooner than expected?

The flip side is selling first and then worrying about finding your next home. Having a short-term housing solution—whether that’s a rental, staying with family, or negotiating a longer closing—can give you flexibility and reduce stress if your ideal property takes longer to appear.

Both options have trade-offs in today’s balanced market. The key is knowing your financial limits, being clear on your must-haves, and having backup plans in place.

Adding Colour to a White Kitchen

An all-white kitchen can feel bright and timeless, but sometimes it needs a little warmth and personality. The good news? You can update the look without a full renovation. From quick weekend projects to bigger upgrades, here are ways to bring in colour and texture.

Change the Hardware:

Swapping plain cabinet handles and pulls for antique brass, bronze, or other warm-toned metals can instantly give your kitchen a richer, more inviting feel.

Style with Intention:

Small decorative touches can make a big difference. Try a table lamp on the counter, a framed piece of art, a beautiful wooden cutting board, or a stack of colourful cookbooks. Even hanging plates or adding a shelf for mugs can add life to the space.

Update the Countertops:

For a more substantial change, replace your countertops with a warmer or darker stone. The contrast will add depth and make your white cabinets stand out.

Paint the Walls:

Introducing a new wall colour is one of the simplest ways to refresh a white kitchen. Whether you go for a bold statement shade or a soft, muted tone, it’s an easy project that can be done without touching your cabinetry.

Install a Warm Backsplash:

A new backsplash can transform your kitchen’s atmosphere. Opt for tiles with natural variation, such as zellige, or choose organic, irregular shapes for a warm, modern look.

Full article linked here

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Waterloo, ON N2L 6C2, Canada