Good Morning,

 

We hope this email finds you well.

 

We wanted to share a quick update on the Waterloo Region real estate market for March 2026. As we move into the spring market, we’re seeing clear signs of renewed momentum. Sales activity has picked up meaningfully month-over-month, new listings are increasing, and inventory remains relatively tight—creating a more competitive environment than many broader Ontario markets.

 

 

March saw a 39.4% increase in home sales month-over-month, alongside a 44.8% surge in new listings, signaling that both buyers and sellers are re-engaging with the market.

At the same time, inventory remains constrained, with just 2.9 months of supply, keeping conditions relatively balanced but leaning toward seller-favourable in certain segments.

From a pricing perspective, values continue to stabilize:

 

While year-over-year numbers still show softer pricing and slightly longer selling times, the more important story is what’s happening right now:

Looking deeper into the data:

This tells us the market is price-sensitive, but still active—buyers are engaged, just more selective.

 

Across Ontario and nationally, broader housing trends continue to shape buyer behaviour and overall market sentiment:

 

Ontario active listings are up 2.2% year-over-year (49,884), while average home prices are down 6.7% year-over-year to $746,900. In the GTA, prices are down 7.1% year-over-year, with sales declining 6.3%, and national home sales are down slightly month-over-month (-1.3%).

 

At the same time, interest rate expectations remain a key factor. The Bank of Canada’s overnight rate sits at 2.25%, while the 5-year Government of Canada bond yield has increased to 4.6%, putting some upward pressure on fixed mortgage rates.

 

A major recent development is Ontario’s temporary removal of the full 13% HST on eligible new home purchases, in effect from April 1, 2026, to March 31, 2027. This applies to new homes under $1 million (with partial rebates up to $1.85 million), offering potential savings of up to $130,000.

 

This policy is designed to stimulate housing supply, support new construction, and bring more buyers back into the market. It is expected to drive increased activity in the pre-construction segment and may help some buyers re-qualify who previously could not.

 

From an economic forecasting perspective, TD Economics recently revised its 2026 outlook, now expecting a slight decline in national home sales (-1.8%) and a 3.2% decline in Ontario transactions, with prices projected to soften modestly. This reflects ongoing affordability challenges and cautious buyer behaviour as many wait for clearer market direction.

 

 

While broader Ontario and national markets are still working through pricing adjustments and affordability pressures, Waterloo Region continues to stand out for its relative stability, balanced inventory levels, and consistent buyer demand.

 

In short, the local market remains more resilient than many surrounding areas—offering both opportunity and stability when approached with the right strategy.

 

 

This is not a market where everything sells — it is a market where the right homes sell.

 

Well-priced, well-presented homes in strong neighbourhoods are still attracting interest and selling within a reasonable timeframe. Properties that are not aligned with current market conditions are sitting longer and requiring price adjustments.

 

We are also seeing a clear shift in buyer behaviour: buyers are active, but more selective. Conditional offers and negotiation are now standard, and price sensitivity is high—particularly in segments with higher inventory. When you layer in rising fixed rates and recent policy changes impacting new construction, it reinforces that this is a market that requires thoughtful positioning and strategy.

 

The opportunity right now is that we are in a period of relative price stability, where buyers still have choice and negotiating power, but activity is improving.

 

The key takeaway: success in today’s Waterloo Region market comes down to pricing, presentation, and strategy—not timing the market.

 

 

If you are considering making a move this year, we would be happy to walk you through what this means for your specific situation.

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.

3 Things We Always Recommend Before Listing Your Home

Preparing your home for the market doesn’t have to mean a full renovation. In fact, the biggest impact usually comes from a few strategic updates that make your space feel clean, cohesive, and move-in ready.

 

These are the 3 things we consistently recommend to every seller before going live:

1. Paint your walls a soft, neutral tone:

This is one of the simplest ways to completely transform your home.

 

Neutral walls create a clean backdrop that helps buyers focus on the space itself, not the colour choices. It also makes rooms feel brighter, larger, and more cohesive from one area to the next.

 

We typically recommend tried-and-true paint colours such as:

You don’t need to paint every room the exact same colour, but they should feel cohesive as you move through the home. The goal is to neutralize each space so potential buyers can easily envision themselves living there.

 

By sticking with soft white tones, your home will naturally feel brighter, more open, and more spacious.

2. Declutter properly (not just a quick tidy):

This is where most sellers fall short.

 

Decluttering isn’t about making things look “clean enough.” It’s about removing anything that distracts from the space.

 

That means:

One of our favourite tips is to keep a designated bin or basket for everyday items. Before a showing, you can quickly tuck things away and instantly reset the space.

 

The goal is simple. When a buyer walks in, the home should feel calm, spacious, and easy to picture themselves in.

3. Update dated fixtures and hardware:

You don’t need a full renovation to modernize a home.

 

Small updates like swapping out light fixtures, cabinet hardware, or even faucets can make a noticeable difference. These are relatively low-cost changes, but they instantly elevate the overall look.

 

You also don’t need to spend a fortune. There are plenty of elevated, on-trend options available at places like Home Depot or even through Amazon.

At the end of the day, preparing your home for sale is about creating a space that feels clean, cohesive, and easy to fall in love with.

 

If you’re thinking about selling and aren’t sure where to start, we’re always happy to walk through your home and give you a clear, no-pressure plan on what will actually make a difference.

As of April 1, 2026, Ontario has introduced a major incentive for new home buyers — and it’s one of the most significant we’ve seen in years.

 

For a limited time, the full 13% Harmonized Sales Tax has been eliminated on eligible new home purchases.

 

That means buyers can save up to $130,000 on a new build.

 

The program runs until March 31, 2027, and applies to new detached homes, semis, townhomes, and condos priced under $1 million, with partial rebates available on homes up to $1.85 million. It’s also not limited to first-time buyers, meaning more people can take advantage of it.

Why this matters right now:

Over the past year, new construction across Ontario has slowed significantly. Condo pre-sales have stalled, and many developers have been hesitant to move forward without strong buyer demand.

 

This incentive is designed to change that.

 

By reducing the upfront cost of buying a new home, the goal is to bring buyers back into the market and give builders the confidence to start new projects again.

What this means for buyers:

The impact is bigger than it sounds.

 

A $900,000 new build, for example, could effectively be reduced to around $783,000 at the point of purchase. That doesn’t just lower the purchase price. It can also:

For some buyers, this could be the difference between qualifying and not qualifying.

Important timelines to know:

To take advantage of this program, there are a few key deadlines:

These timelines are important, especially when considering pre-construction opportunities.

What we’re expecting to see:

We anticipate increased activity in the new construction space over the coming months, particularly with pre-construction purchases.

 

Buyers who may have paused their search are starting to revisit options, and developers are likely to respond as demand builds.

 

If you’ve been considering a new build, or are curious how this could impact your buying power, this is the time to take a closer look. We’re happy to walk you through what opportunities are available locally, and whether this makes sense for your situation.

Do You Pay Tax When You Sell Your Home in Canada? 

Real estate has been one of the strongest ways Canadians have built wealth over the past few decades. But when it comes time to sell, one of the biggest questions we get is: “Am I going to owe tax on this?”. The answer is… it depends.

When your sale is typically tax-free

If the home you’re selling has been your primary residence for the entire time you’ve owned it, you’re generally exempt from paying tax on the profit.

 

This is thanks to what’s called the Principal Residence Exemption — and it’s a major reason why real estate has been such a powerful wealth-building tool in Canada.

 

For many homeowners, that means the full gain from their sale is completely tax-free.

When you might owe tax:

Where things start to change is when the property hasn’t been used strictly as your primary home.

 

Here are a few situations where tax may apply:

If any of these apply, it doesn’t automatically mean you’ll owe tax, but it does mean you should look a little closer before listing.

A big one people don’t realize: quick resales:

If you sell a property within 365 days of buying it, the CRA may treat the profit as business income, not a capital gain.

 

That means:

This rule was introduced to crack down on flipping, and it catches more people than you’d think.

 

There are exceptions (like job relocation or major life changes), but if you bought with the intention of reselling quickly, expect it to be taxed.

What about rental or secondary properties?

If you’re selling a rental, cottage, or investment property, capital gains tax will apply.

 

In Canada, only 50% of the gain is taxable, but the actual amount you pay depends on your income and tax bracket.

 

It’s also worth noting that proposed changes to increase this rate were cancelled, so as of now, those rules remain unchanged.

Don’t forget, you still need to report the sale:

Even if your home qualifies as your principal residence and you owe zero tax, the sale still needs to be reported to the CRA.
 

This is something a lot of sellers miss.
 

Keeping records like your purchase price, legal documents, and major renovations will help support your claim and protect you if questions ever come up later.

The bottom line:

Most homeowners won’t pay tax when selling their primary residence — but the moment your situation gets even slightly more complex, the rules can change quickly.

 

If you’re unsure where you stand, it’s always worth having a quick conversation before you list. A small detail can make a big difference.