Good Morning,
We hope this email finds you doing well.
As we head into the final weeks of the year, we wanted to share a brief snapshot of what we’ve been seeing in the Waterloo Region real estate market — and what current trends are pointing to as we move into 2026.
November’s data reflects continued cooling across the region, with 465 homes sold through the MLS System—down 14.8% from last year and nearly 25% below the 10-year November average. Softer demand, higher inventory, and longer days on market are giving buyers more choice and stronger negotiating power.
Even so, with Waterloo Region remaining a highly desirable place to live and interest rates trending downward, there is growing optimism that more buyers will return to the market in the year ahead.
November residential sales included:
• 274 detached homes (down 18.0%), average price $827,617.
• 91 townhouses (down 20.9%), average price $595,337.
• 59 condominium units (up 11.3%), average price $422,056.
• 41 semi-detached homes (down 6.8%), average price $635,375.
The average sale price for all residential properties was $713,751, down 5.4% year-over-year. There were 764 new listings (down 14.4%), and active inventory increased to 1,757 homes-the highest November inventory in over a decade. Months of supply rose to 3.4, with condos at 6.4 months. The average time to sell increased to 39 days, up from 27 days last November.
These trends align with the 2026 Housing Market Outlook for Kitchener Waterloo released by RE/MAX Canada. In 2025, the average residential sale price fell 6%, sales decreased 2.8%, and listings rose 13.8%. Prices are expected to remain flat through early 2026, with a potential slight decrease of up to 3%. Employment changes, inflation, and income stability will continue to influence demand.
Kitchener-Waterloo is expected to remain a balanced market in 2026, with some well-located homes continuing to see strong buyer interest and, in some cases, multiple offers. Established neighbourhoods such as Beechwood, Westmount, and Colonial Acres are good examples of areas that tend to perform consistently due to their mature streetscapes, lot sizes, and long-term appeal. Single-detached homes are expected to continue leading demand, while first-time buyers focus on affordability in the $500,000–$600,000 range. Move-up buyers typically target $750,000–$950,000, and downsizers continue to lean toward low-maintenance homes around $600,000. New-home construction remains active, though some condo developments may experience delays.
Looking ahead to 2026, buyer behaviour across Kitchener-Waterloo continues to be shaped by affordability, lifestyle needs, and broader economic conditions. First-time homebuyers remain focused on value, typically seeking turn-key homes in the $500,000 to $600,000 range. They are prioritizing move-in readiness and functional space without stretching beyond their means.
Move-up and move-over buyers are generally targeting homes in the $750,000 to $950,000 range, looking for comfort, room to grow, and the ability to personalize through renovations. Many in this group are open to older homes that may require minor updates in exchange for better layouts, larger lots, or more established settings. Retirees and downsizers continue to prioritize peace and simplicity, favouring low-maintenance properties with typical budgets around $600,000.
New-home activity in the region remains active and is largely made up of traditional, cookie-cutter subdivisions as well as newer “six-minute neighbourhoods” designed around convenience and walkability. While many ground-oriented new builds are proceeding largely as planned, condominium developments are taking longer than expected, with some facing delayed construction timelines and closing risks.
The housing market could begin to pick up again in 2026, supported by easing interest rates, which would help boost buyer activity. At the same time, rising rental prices are making it more difficult for renters — particularly first-time buyers — to save for down payments, despite strong long-term aspirations for homeownership.
Investor behaviour is also evolving. Ongoing challenges at the Landlord and Tenant Board continue to influence decision-making, leading some investors to exit the market. Issues such as problem tenancies, squatting, and property damage are increasingly outweighing the benefits of higher rental rates for some.
Overall, 2026 is shaping up to be a strategic year to buy in the region. Relative affordability, stable financing conditions, and normal price and inventory fluctuations present opportunities for prepared buyers. Maintaining strong employment levels will remain critical to supporting housing demand, as economic stability and job security continue to be the most important drivers of buyer confidence and long-term market health in Kitchener-Waterloo (Click here to read the full article.)
If you have questions about how these trends relate to your goals, whether you’re thinking of buying, selling, investing, or simply planning ahead, we’re always here to help.
