We hope you’re enjoying the summer and finding some time to slow down and make the most of the warmer weather.
As we move through July, we wanted to share a quick look at what happened in the Waterloo Region real estate market in June.
Sales activity improved modestly from May, although buyers remained highly selective and prices continued to soften.
A total of 650 homes sold in June, up 2.7% from 633 sales in May, but still 4.4% below June of last year. The average sale price also declined both month-over-month and year-over-year.
The market remains active, but strategy matters more than ever. Buyers are responding when they see value, while homes that are overpriced or not positioned properly are having a much more difficult time generating meaningful interest.
June at a Glance
Compared with May 2026 and June 2025:
650 homes sold: up 2.7% from May, but down 4.4% year-over-year
Average sale price of $730,668: down approximately 1.9% from May and 6.5% year-over-year
Median sale price of $690,000: down 5.0% year-over-year
1,401 new listings: down 3.8% from May and 7.5% year-over-year
2,053 homes available for sale: up 1.5% from May, but down 6.7% year-over-year
27 average days on market: unchanged from June 2025
4.1 months of inventory: down slightly from 4.2 months one year ago
100.9% of the most recent list price received: compared with 101.2% last June
The month-over-month picture was mixed. More homes sold in June, but prices softened and selling timelines generally lengthened from May. Compared with last year, sales, prices, new listings and inventory all remained lower.
What We’re Seeing in the Market
Beyond the statistics, buyers continue to respond to homes that are properly prepared, accurately priced and effectively positioned from the beginning.
Today’s buyers have access to more information than ever. They are comparing each property against competing listings, recent sales, neighbourhood trends, condition and overall value. Strategic pricing is not just about attracting attention-it is about creating enough interest and confidence to motivate buyers to act.
The sellers achieving the strongest results are generally those who fully commit to the process. They follow the recommended preparation and staging plan, address the details that matter and price according to the current market.
We saw this firsthand last week with two of our listings priced above $1 million. Both were priced at market value-not intentionally underpriced, and both sold within days, above asking and in multiple offers. In each case, the sellers fully committed to the preparation, staging, pricing, marketing and launch strategy.
Not every home requires extensive renovations or a major financial investment before selling. The key is knowing which improvements matter, where money should and should not be spent and how to position the property, so it stands out from the competition.
Single-Family Homes
Single-family homes continued to outperform the townhouse and condominium segment in June.
430 sales: up 2.9% from May, but down 2.5% year-over-year
Average sale price of $838,386: down 1.7% from May and 7.0% year-over-year
Median sale price of $775,000: down 0.8% from May and 6.1% year-over-year
23 average days on market: up from 20 days in May and unchanged from last June
3.4 months of inventory
101.4% of the most recent list price received
Year-to-date single-family sales were essentially unchanged from 2025, increasing by 0.1%. With fewer months of inventory and shorter selling timelines, this segment continues to experience stronger relative demand.
Townhomes, Semis and Condominiums
The townhouse, semi-detached and condominium segment continues to offer buyers more choice and greater negotiating power.
220 sales: up 2.3% from May, but down 7.9% year-over-year
Average sale price of $520,128: down 2.8% from May and 7.0% year-over-year
Median sale price of $525,000: down 4.5% from May and 5.4% year-over-year
35 average days on market: up from 30 days in May and unchanged from last June
5.4 months of inventory
100.0% of the most recent list price received
With more inventory and longer selling timelines than the single-family segment, this part of the market remains especially price sensitive. Accurate pricing and strong presentation become even more important when buyers have more options.
Broader Housing and Economic Context
Nationally, Canada’s housing market also continued to improve gradually in June.
Home sales increased by 0.5% from May, marking a third consecutive monthly increase and placing activity approximately 7% above March levels. The National Composite MLS® Home Price Index was unchanged from May, while national inventory remained close to its long-term average.
CREA also revised its housing-market forecast in July. It now expects national home sales to decline modestly by 1.4% in 2026 following a weaker first half of the year but anticipates a more active second half.
Importantly for our local market, Ontario is now the only province forecast to record an annual increase in home sales in 2026. National sales are then forecast to rise by 3.7% in 2027 as stable interest rates, modest economic growth and pent-up demand gradually bring more buyers back into the market.
On July 15, the Bank of Canada held its overnight rate at 2.25% for a sixth consecutive meeting. Canada’s annual inflation rate also eased to 2.8% in June from 3.2% in May.
Taken together, these developments support a cautiously optimistic outlook. A dramatic rebound is not expected, but stable interest rates, moderating inflation and improving activity in Ontario may help strengthen confidence as we move toward the fall market.
Bottom Line
June brought slightly stronger sales activity than May, but prices remained under pressure and buyers continued to be selective.
The opportunity for strong results still exists. However, the homes performing best are generally those that are thoughtfully prepared, strategically priced and professionally marketed from the outset.
A home does not need to be perfect, but it does need a clear and coordinated strategy-one that considers the home/property itself, the competition, the target buyer and the realities of today’s market.
For buyers, the current market continues to offer more choice, more time to make informed decisions and greater negotiating opportunities than during the highly competitive markets of recent years.
If you are considering buying, selling, downsizing or relocating, or are simply wondering what your home may be worth in today’s market-we would be happy to help.
Below you will find some of The Deutschmann Team's featured listings. Tap each image below to view more information about the listing.
Why Layout Can Matter More Than Square Footage When Selling
When buyers compare homes, the largest property does not always come out ahead.
A smaller home with a thoughtful floor plan, comfortable room proportions, natural light, practical storage, and an easy flow can feel far more spacious and valuable than a larger home with awkward or underused areas.
Buyers are not simply evaluating how much space a home has. They are considering how well that space supports everyday life.
How Buyers Experience a Home
During a showing, buyers notice whether the entrance feels functional, how the kitchen connects to the main living areas, whether the bedrooms feel private, where furniture will fit, and whether each room has a clear purpose.
They are also thinking about storage, work-from-home space, backyard access, and whether the lower level adds genuine value.
A larger home may include long hallways, disconnected rooms, difficult furniture arrangements, or formal spaces that buyers are unlikely to use. Those areas still contribute to the total square footage, but they may not contribute equally to the home’s perceived value.
By comparison, a smaller home can feel remarkably functional when it offers comfortable gathering spaces, practical storage, flexible work areas, and a natural connection between the kitchen, living spaces, and backyard.
Why Presentation Matters
For sellers, this is an important reminder that square footage contributes to value, but layout often determines how strongly buyers respond to the home.
A strong floor plan should be clear both online and in person. Thoughtful staging can help establish the purpose and scale of each room, while professional photography, video, and measured floor plans allow buyers to better understand the home’s flow and functionality.
Layout Should Inform Pricing
Two homes with similar square footage, age, and location may perform very differently depending on room proportions, natural light, storage, kitchen flow, basement usability, outdoor access, and overall functionality.
Waterloo Region buyers are not only purchasing square footage. They are purchasing a way of living within the home.
The right preparation, marketing, and pricing strategy can help buyers recognize the full value of what a property offers.
Owning a cottage is a dream for many Canadians. It can offer a peaceful escape, more time outdoors, and a place to create lasting memories with family and friends. However, purchasing a recreational property can be quite different from buying a primary residence.
Before falling in love with the view from the dock, it is important to understand how the property functions, what it will cost to maintain, and whether it truly fits your lifestyle.
Start With How You Plan to Use It
Begin by deciding what you want from the property. Will it be a summer retreat, a year-round second home, an investment property, or a combination of the three?
Consider how often you will realistically visit, how far you are willing to travel, and whether you need reliable winter access. Features such as internet service, nearby amenities, road maintenance, and year-round utilities may be essential if you plan to work remotely or use the cottage beyond the summer months.
A property that looks perfect for a weekend getaway may not necessarily be practical for frequent or four-season use.
Understand the Property’s Essential Systems
Many cottages rely on systems that are less common in urban homes. Rather than municipal water and sewer services, the property may use a well, lake water system, holding tank, or septic system.
Buyers should understand how these systems operate, their current condition, and the maintenance or replacement costs they may require. Water quality testing, septic inspections, and a thorough home inspection can help identify concerns before they become expensive surprises.
It is also important to determine whether the cottage is winterized, how it is heated, and whether the electrical system can support your intended use.
Look Beyond the Shoreline
Waterfront ownership comes with additional considerations. Buyers should consider shoreline conditions, water depth, swimming quality, seasonal water levels, and any restrictions affecting docks, boathouses, or future construction.
Access should also be reviewed carefully. Some cottages are reached by private roads, shared lanes, or water only. Confirm who owns and maintains the road, whether there are registered rights-of-way, and how emergency vehicles or contractors can reach the property.
Zoning, conservation regulations, flood risks, building permits, and short-term rental rules can also influence how the property may be used.
Budget for More Than the Purchase Price
The cost of cottage ownership extends beyond the mortgage payment.
Property taxes, insurance, utilities, septic servicing, road fees, dock maintenance, snow removal, landscaping, pest control, and seasonal opening and closing costs should all be considered. Older or remote properties may also require a larger maintenance reserve.
Insurance should be looked into early, as factors such as the property’s location, heating system, seasonal use, road access, and distance from emergency services can affect both eligibility and cost.
Final Thoughts
Cottage properties are rarely one-size-fits-all. A real estate agent familiar with the local recreational market can help you evaluate comparable properties, access, zoning, waterfront conditions, and the practical realities of ownership in that area.
The right cottage should not only look beautiful during a showing. It should also suit your budget, long-term plans, and the way you genuinely intend to use it.
Considering a cottage or recreational property? Our team can help you understand the buying process and determine what to look for before making an offer.
The Problem With Chasing Yesterday’s Sale Price
When a home sells for a strong price nearby, it is natural for other homeowners to use that sale as a benchmark. However, a property that sold 3 months ago may reflect a very different market than the one sellers are navigating today.
Real estate conditions can shift quickly, particularly in a market as varied as Waterloo Region. Changes in available inventory, mortgage rates, buyer confidence and competing listings can all influence what buyers are prepared to offer at any given moment.
A Sale Price Reflects a Specific Moment in Time
Every sale is the result of the conditions that existed when that property was listed.
The home may have entered the market when buyers had fewer options, interest rates were more favourable or similar properties were receiving multiple offers. It may also have benefited from a particularly motivated buyer, a desirable closing date or competition between several interested parties.
That does not make the sale irrelevant, but it does mean the final price needs to be viewed in context.
Inventory Changes the Conversation
One of the biggest factors affecting a home’s value is the amount of competition currently available.
A home may have sold exceptionally well because it was the only renovated detached property available in its neighbourhood and price range. Three months later, buyers may have several comparable homes to choose from.
When inventory increases, buyers typically become more selective. They have more time to compare layouts, finishes, lot sizes, locations and overall condition. Even a strong property may need to be positioned more carefully when it is competing against several attractive alternatives.
The opposite can also happen. If inventory is limited and buyer demand remains steady, a well-presented home may outperform an earlier comparable sale.
Buyer Confidence Can Shift Quickly
Buyer behaviour is influenced by more than the home itself.
Changes in borrowing costs, economic uncertainty and broader market headlines can affect how aggressively buyers are willing to act. A buyer who might have competed strongly for a property several months ago may now be more cautious, more price-sensitive or more likely to include conditions in an offer.
This is why market value cannot be determined by simply adding a percentage to the last neighbourhood sale.
Not Every Nearby Sale Is Truly Comparable
Even homes on the same street can achieve very different results.
Lot size, privacy, renovations, layout, parking, basement functionality, backing conditions and overall presentation can all affect buyer perception. A home with a renovated kitchen but an awkward floor plan may not compete directly with a slightly smaller property that offers better flow and more usable living space.
The circumstances of the sale also matter. Was the property staged? Did it receive multiple offers? Was it sold privately or through an open-market launch? Were there unusual inclusions, conditions or motivations involved?
The sold price is only one part of the story.
Price for Today’s Buyer, Not Yesterday’s Market
The strongest pricing strategies consider both recent sales and current competition.
Recent sold properties help establish a range, but active listings reveal what buyers are choosing between right now. Pending sales, showing activity and current buyer feedback can offer further insight into whether the market is strengthening, softening or moving differently within a particular neighbourhood or price bracket.
The goal is not to ignore a strong nearby sale. It is to understand why it sold for that amount and whether the same conditions still exist.
A successful sale begins with an honest assessment of the market as it stands today. Pricing based on current conditions helps create urgency, attract serious buyers and protect the property from becoming overlooked while sellers wait for a price the market has already moved past.
