Good Morning,

 

We hope this email finds you well as we near the end of the first month of 2026.

 

 

The Waterloo Region housing market continued its gradual reset throughout 2025. Rather than a sharp correction or a rebound, the year was defined by recalibration-fewer transactions, longer selling timelines, and a return to more traditional market fundamentals.

 

In total, 6,177 homes sold through the MLS® System in 2025. This represents an 8.8% decline compared to 2024 and sits 25.3% below the ten-year annual average. This confirms what many homeowners and buyers experienced firsthand: demand softened as affordability constraints, economic uncertainty, and higher borrowing costs changed buyer behaviour. Buyers became more selective, more analytical, and far less willing to stretch beyond perceived value.

 

December mirrored these broader trends. 306 homes sold during the month, down 9.5% year-over-year and nearly 20% below the long-term December average. While sales volumes remained lower than historical norms, listing activity continued to rise-a key factor reshaping the balance of power in today’s market.

What’s important to understand is that this is not a market where homes aren’t selling. Homes are selling, but only when pricing, condition, and positioning align closely with buyer expectations.

 

 

The average sale price across all residential property types in December was $716,911. This represents a 5.9% decline compared to December 2024, though prices increased modestly (0.5%) from November. This small month-over-month increase suggests that pricing may be beginning to stabilize after a prolonged period of downward adjustment.

 

Breaking pricing down by property type provides much clearer insight into where strength, and weakness, exists.

 

 

 

 

 

 

Inventory growth was one of the defining themes of 2025.

 

This resulted in the following months of supply:

While these numbers do not indicate oversupply, they do reflect a clear shift away from the extreme seller-favourable conditions of prior years. Buyers are no longer forced to act immediately and are taking time to compare options.

 

 

Homes are taking longer to sell. In December, the average time on market was 45 days, compared to 36 days last year and a five-year average of 24 days. This reflects a more deliberate buyer mindset-more showings before offers, more conditions, and greater scrutiny of pricing and value.

 

 

As we move into early 2026, most indicators point toward stabilization rather than a rapid rebound. Affordability remains a key constraint, particularly for first-time buyers, though proposed federal and provincial incentives, including the removal of HST on new homes up to $1M for first-time buyers, may provide some support at the margins.

 

For resale homes, success will continue to depend on accuracy and strategy. Markets like Waterloo Region, which experienced significant growth during 2020–2022, are still working through that adjustment.

 

If you’re considering buying or selling in 2026 or simply want to understand how these trends apply to your specific home or neighbourhood, we’re always happy to provide tailored guidance. Contact us today-we'd love to hear from you 🙂

 

 

Featured Listings

Below you will find some of The Deutschmann Team's featured listings. Tap each image below to view more information about the listing.

Getting an offer accepted feels like crossing a finish line. The photos, the prep, the showings, the constant cleaning… it finally paid off.

 

But an accepted offer doesn’t mean the sale is done. It means you’ve entered the final stretch. This is where conditions are worked through, legal steps happen behind the scenes, and everything gets lined up for closing day.

 

Here’s what sellers should expect once an offer is signed.

What an “Accepted Offer” Really Means

Once both parties sign the Agreement of Purchase and Sale, you have a legally binding contract. The price, deposit, timelines, and terms are now locked in.

 

If the offer includes conditions, the sale is considered conditional. During this window, the buyer completes due diligence like financing or inspections. Only when those conditions are fulfilled or waived does the sale become firm.

 

Firm means fully committed. At that point, the buyer can no longer walk away, and the transaction moves straight toward closing.

How Long It Takes to Close

Most sales close 30 to 90 days after acceptance, depending on what was negotiated in the offer.

 

Dates can change, but only if both sides agree in writing. Extensions usually happen due to financing delays, inspection issues, legal complications, or because a related purchase hasn’t lined up yet.

 

Nothing shifts automatically. Every change must be documented.

Understanding Conditions

Conditions protect the buyer and come with firm deadlines. Before those deadlines, the buyer must satisfy, waive, renegotiate, or terminate the agreement.

 

The most common conditions are:

Other conditions can include the sale of the buyer’s home, surveys, well and septic tests, environmental reviews, permit verification, confirmation of legal suites, or estate or separation matters.

 

Until all conditions are removed, the sale is not firm.

 

Some sellers continue showings and accept backup offers during this stage. Others pause marketing. The right approach depends on market conditions and the strength of the offer.

What Happens Once the Sale Is Firm

When the last condition is removed, the focus shifts to closing.

 

As a seller, you’ll prepare to:

Your agent and lawyer coordinate the rest behind the scenes.

The Bottom Line

Accepting an offer is a huge milestone, but it’s not the end. The period between acceptance and closing is where details, deadlines, and strategy matter most.

 

A strong agent manages conditions, protects your position, and keeps everything on track so your sale closes smoothly and without surprises.

 

You’re close. Now it’s about finishing properly.

The Hidden Factors That Influence What Buyers Will Pay for Your Home in 2026

When homeowners prepare to sell, most focus on the obvious: price, timing, and upgrades. While those elements still matter, buyers in 2026 are influenced just as much by subtle details that quietly shape perception. In a market where buyers are highly informed and often touring several homes before making a decision, how a property is positioned can significantly affect both the offers it attracts and the final sale price.

 

A key role of your real estate agent is to identify and manage these less visible factors so your home enters the market with clarity, confidence, and competitive strength.

First Impressions Shape Everything

Buyers form opinions almost immediately. Light, temperature, sound, scent, and overall atmosphere all influence whether a home feels welcoming and well cared for, or heavy and demanding. Homes that feel comfortable and calm encourage buyers to linger, explore, and respond emotionally. Homes that feel uncomfortable are often judged more critically.

 

An experienced agent will guide preparation and presentation to ensure your home creates the right impression from the moment a buyer walks in.

Mental Clarity Increases Perceived Value

As buyers move through a home, they subconsciously assess how easy it is to understand. Cluttered spaces, overly personalized décor, and undefined rooms create mental fatigue. Clear layouts, organized storage, and cohesive presentation allow buyers to process the space quickly and imagine themselves living there.

 

Your agent’s job is to help remove visual and functional obstacles so your home feels simple, open, and intuitive. That sense of ease builds comfort, and comfort supports stronger offers.

Buyers Evaluate Future Risk

Beyond what is visible, buyers are quietly assessing how complicated the home may be to own. Signs of deferred maintenance, visible patchwork repairs, or unclear renovation histories introduce uncertainty. Even small unknowns can lead to increased conditions, longer negotiations, and downward pressure on price.

 

A real estate agent helps prepare documentation, coordinate disclosures, and present your home transparently so buyers feel confident moving forward.

Marketing Frames Your Home Before Anyone Arrives

Most buyer impressions are formed online. Photography, lighting, composition, and written presentation establish expectations long before a showing takes place. High-quality marketing positions your home as well managed and desirable. Weak or inconsistent marketing quietly signals risk.

 

Your agent oversees how your home is visually and strategically presented so it attracts the right attention and enters the market properly positioned.

The Takeaway for 2026 Sellers

In today’s market, success is not only about what you change in your home. It is about how your home is positioned, experienced, and understood by buyers.

Working with the right real estate agent ensures these quieter value drivers are intentionally managed so your home is not simply listed, but strategically prepared and marketed to protect your equity and maximize results.

When homeowners think about improving their space, attention usually goes straight to kitchens, bathrooms, and living rooms. While those areas matter, some of the biggest opportunities to improve how a home looks and functions are often hiding in the background.

 

The spaces we walk through, store things in, or use daily without much thought can have a huge impact on how organized, comfortable, and “put together” a home feels. Small improvements in these overlooked areas often deliver some of the biggest lifestyle upgrades.

 

Here are five of the most underrated spaces in a home — and simple, realistic ways to elevate them.

Entryways

The entryway is the first and last space you experience every day, yet it’s often treated like an afterthought. A cluttered or dim entry makes the whole home feel more chaotic, while a well-designed one instantly creates a sense of calm and arrival.

 

Simple upgrades include adding proper lighting, a mirror to reflect natural light, and intentional storage such as hooks, benches, or slim cabinets. A durable rug, a small tray for keys, and consistent finishes can make even a small entry feel purposeful rather than temporary.

 

The goal isn’t to decorate — it’s to make the space function effortlessly.

Hallways

Hallways don’t get decorated, but they’re constantly seen. Long, narrow, or dark hallways can quietly drag down the feel of a home.

 

Upgrading a hallway is often about light and continuity. Brighter bulbs, updated light fixtures, and a cohesive paint colour can dramatically change the mood. Framed art, subtle wall moulding, or a runner can add character without making the space feel busy.

 

Because hallways connect rooms, they’re the perfect place to create flow and consistency across the home.

Laundry Rooms

Laundry rooms are one of the most used spaces in a home — yet they’re often left unfinished or purely utilitarian. Even small upgrades here can noticeably improve day-to-day life.

 

Adding upper cabinetry, a folding counter, wall shelving, or baskets for sorting instantly increases usability. Swapping harsh lighting for brighter, warmer options and introducing a simple backsplash or paint refresh can make the room feel intentional rather than industrial.

 

When a space works better, it gets used better.

Storage Rooms & Closets

Storage isn’t about having more space — it’s about using the space you already have well. Poor storage makes a home feel smaller. Organized storage makes it feel easier.

 

Simple systems such as adjustable shelving, labelled bins, drawer inserts, and vertical storage can completely change how a home functions. Clearing floors, creating defined zones, and improving lighting often makes storage areas feel like extensions of the home rather than forgotten corners.

 

Well-organized storage quietly improves every room it supports.

Basements

Basements often become catch-all spaces instead of intentional ones. But they’re also some of the most flexible square footage in a home.

 

Even without a full renovation, adding proper lighting, improving ceiling finishes, upgrading flooring, and defining zones for media, fitness, work, or guests can dramatically increase how the space is used. Area rugs, softer lighting, and thoughtful furniture placement help basements feel like living space rather than leftover space.

 

The most successful basements are the ones that feel like a destination, not a storage unit.

Why These Spaces Matter

Upgrading underrated areas rarely requires major construction, but it almost always improves how a home feels to live in. When transitional and functional spaces are clear, bright, and well organized, the entire home benefits. Daily routines become easier. Visual noise is reduced. The home feels calmer, cleaner, and more cohesive.

 

These improvements also tend to age well. They’re not trend-driven. They support lifestyle, flow, and long-term usability.