It’s hard to believe we’re already halfway through August. We hope you’ve been enjoying the summer and making the most of these last few weeks before September arrives.
With July now behind us, we wanted to share an update on the Waterloo Region real estate market and some of the trends we’re seeing as we head toward the fall market.
July brought a noticeable slowdown in activity compared with June, with fewer sales, softer prices and longer selling times. At the same time, fewer new listings came to market and overall inventory also declined.
The market remains active, but increasingly selective. Buyers are paying close attention to value, and how a home is prepared, priced and positioned continues to have a significant impact on the results sellers are achieving.
July at a Glance
Compared with June 2026 and July 2025:
579 homes sold — ↓ 10.9% vs. June | ↓ 10.4% YoY
$707,016 average sale price — ↓ 3.2% vs. June | ↓ 3.8% YoY
$675,000 median sale price — ↓ 2.2% vs. June | ↓ 2.9% YoY
1,158 new listings — ↓ 17.3% vs. June | ↓ 14.5% YoY
1,927 homes for sale — ↓ 6.1% vs. June | ↓ 9.4% YoY
33 days on market — ↑ from 27 in June | ↑ from 32 last July
3.9 months of inventory — ↓ from 4.1 in June | ↓ from 4.0 last July
100.2% of most recent list price received — ↓ from 100.9% in June | ↓ from 100.9% last July
Year-to-date, residential sales are ↓ 5.9% from 2025, while the average sale price is ↓ 4.8% and the median sale price is ↓ 5.0%.
A Closer Look by Housing Type
The overall market numbers only tell part of the story. There continues to be a meaningful difference between the performance of single-family homes and the townhouse, semi-detached and condominium segment.
Single-Family Homes:
Single-family homes continued to show stronger relative demand in July.
383 sales — ↓ 10.9% vs. June | ↓ 1.0% YoY
$811,734 average sale price — ↓ 3.2% vs. June | ↓ 5.2% YoY
$760,000 median sale price — ↓ 1.9% vs. June | ↓ 3.4% YoY
30 days on market — ↑ from 23 in June | ↑ from 28 last July
3.2 months of inventory — ↓ from 3.4 in June | ↓ from 3.4 last July
100.3% of most recent list price received
Year-to-date, single-family sales are slightly ahead of 2025, increasing by 0.4%. With fewer months of inventory and considerably stronger year-over-year sales activity than the townhouse and condominium segment, single-family homes continue to be the more resilient part of the market.
Townhomes, Semis & Condominiums
This segment continues to offer buyers more choice and greater negotiating power.
196 sales — ↓ 10.9% vs. June | ↓ 24.3% YoY
$502,390 average sale price — ↓ 3.4% vs. June | ↓ 9.5% YoY
$516,500 median sale price — ↓ 1.6% vs. June | ↓ 10.5% YoY
39 days on market — ↑ from 35 in June | unchanged YoY
5.1 months of inventory — ↓ from 5.4 in June | unchanged YoY
99.9% of most recent list price received
Year-to-date, sales in this segment are ↓ 15.6% from 2025, while both the average and median sale prices are ↓ 8.3%.
With more inventory and longer selling timelines than the single-family segment, this part of the market remains especially price sensitive. Buyers have more options, which makes accurate pricing and strong presentation even more important.
What We’re Seeing in the Market
Homes are selling, but the margin for error on pricing has become very small.
Establishing an accurate market value today can take some serious number crunching. In some cases, we spend hours analyzing a home before arriving at the pricing strategy we believe gives the seller the strongest opportunity for a successful result. There is far more involved than pulling a few recent comparable sales and averaging the numbers.
We look at the home from every angle — recent sales, current competition, location, lot, square footage, condition, renovations, layout, buyer demand, inventory, days on market and pricing history. When there are not enough truly comparable recent sales, we may need to go back several years, analyze historical market trends and adjust previous sale prices to understand what a similar home would likely be worth in today’s market.
Every meaningful difference has to be accounted for. A larger lot, a superior location, an additional bedroom, a finished basement, the quality of a renovation, age, condition or even the type of buyer a particular home is likely to attract can materially affect value. The numbers need to make sense from every angle.
This is also where experience becomes especially important. An agent who has worked through many different markets has seen how buyers behave when inventory is tight, when it is elevated, when prices are rising quickly and when they are correcting. That experience helps put the data into context and distinguish between a comparable sale that is genuinely relevant and one that may look similar on paper but tells us very little about the value of the home being priced.
Ultimately, the math has to support the recommendation. When the analysis is thorough and the home is positioned correctly, we are still seeing buyers respond quickly and, in some cases, compete. When the price misses the market, even by what may seem like a relatively small amount, the difference in activity can be significant.
The strongest results tend to come when sellers trust that process — preparing and staging the home where appropriate, listening to the market and following a coordinated pricing and launch strategy from the outset.
Not every home needs extensive renovations or a significant investment before it is listed. In many cases, part of our job is knowing what not to spend money on, which improvements will actually matter to buyers and where a seller’s time and money will have the greatest impact.
CMHC Housing Market Outlook
CMHC’s latest Summer 2026 Housing Market Outlook points to a gradual recovery rather than a sudden rebound.
For Kitchener-Cambridge-Waterloo, CMHC is forecasting approximately 6,100 MLS® sales in 2026, essentially unchanged from 6,115 sales in 2025. The average sale price is expected to decline to approximately $730,000 from $754,842 in 2025, reflecting the continued pressure on prices we have been seeing locally.
Looking ahead, CMHC expects conditions to improve gradually. Sales are forecast to increase to approximately 6,900 in 2027 and 7,450 in 2028, while the average sale price is projected to recover to approximately $740,000 in 2027 and $780,000 in 2028.
Overall, CMHC’s outlook is consistent with what we are seeing locally. The market is expected to remain relatively subdued through 2026, with activity gradually strengthening in 2027 and 2028.
Bottom Line
There are still buyers in the Waterloo Region market and homes are selling, but this is not a market where sellers can afford to guess on price or strategy.
The strongest outcomes are generally happening when the analysis is thorough, the home is properly prepared and sellers trust the process from the beginning. At the same time, the significant difference between housing types means there is no single strategy that works for every property.
For buyers, the current market offers more choice, more time to assess value and, in many cases, greater negotiating opportunity than during the highly competitive markets of recent years.
If you are considering buying, selling, downsizing or relocating — or simply want an accurate and thoughtful assessment of 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.
How Current Market Conditions Affect Your Home’s Pricing Strategy
Market conditions play an important role in determining what buyers are willing to pay for a home at a given point in time. As the balance between available inventory and active buyers changes, so does the level of competition surrounding individual properties.
Supply, Demand and Buyer Competition
The same home may support a different pricing range depending on how many comparable properties are available, how quickly buyers are making decisions, current financing conditions and the strength of demand within its specific price range.
When inventory is limited and several buyers are competing for similar homes, sellers may have greater leverage. When buyers have more options, pricing becomes increasingly important because they can compare properties more closely and may be less willing to stretch beyond perceived market value.
Local Conditions Matter More Than Regional Averages
An accurate market assessment needs to go further than a broad Waterloo Region average. Kitchener, Waterloo and the surrounding townships do not necessarily move at the same pace, and conditions can vary considerably between neighbourhoods, property types and price points.
A strong pricing analysis considers several factors together, including:
Recent comparable sales within the immediate area
Current competing listings and their asking prices
New inventory entering the market
Properties that have recently sold conditionally
Price reductions among competing homes
Average and median days on market for similar properties
The level of buyer activity within a particular price range
Differences in demand between detached homes, townhomes and condominiums
These details help establish not only what similar homes have sold for, but also what sellers are competing against today.
Why Recent Sales Carry More Weight
The most recent relevant sales typically deserve more weight than transactions from several months earlier because they better reflect current buyer behaviour.
An older sale from a stronger or weaker market can still provide useful context, but it should be considered alongside changes in inventory, demand, financing conditions and overall market momentum before being applied to a current property.
For example, a home may have strong historical comparable sales, but if several similar properties are now available and taking longer to sell, that additional competition needs to be reflected in the pricing strategy.
Pricing for the Market Buyers Are Seeing Today
Pricing is less about selecting a number based on one comparable sale and more about determining where a property fits within the market buyers are seeing right now.
The goal is to establish a price that reflects the home’s features, condition and location while also accounting for the level of competition surrounding it at the time it is listed. A well-informed strategy can help position the property effectively from the outset rather than relying on older market conditions that may no longer reflect current demand.
If you are considering selling your home this winter, some of the most valuable preparation can happen months before your property officially hits the market.
Starting early gives you more time to prepare thoughtfully, but it also creates an opportunity to capture your home while certain seasonal features are still at their best.
Capture Your Home Before the Seasons Change
Late summer and early fall can be an ideal time to photograph exterior spaces, particularly if your property includes landscaping, mature trees, a pool, patio, gardens or other outdoor features.
Once winter arrives, many of these details can be difficult for buyers to fully appreciate. Pools are closed, gardens are dormant and larger yards or views may be partially obscured by snow.
Having professional seasonal photography completed in advance allows these features to remain part of your marketing, even if your home is listed later in the year.
Make Sure Buyers Can See the Full Value of Your Outdoor Space
For some homes, the backyard is a major part of the overall appeal. That is especially true for properties with:
Pools or extensive patios
Professionally landscaped yards
Large or private lots
Mature trees and gardens
Outdoor kitchens or entertaining areas
Greenspace, trail or waterfront views
Photos taken during the warmer months can help buyers better understand how these spaces are used and what they offer throughout the year.
Give Yourself More Time to Prepare
Starting early does not mean you need to list early.
It simply gives you more flexibility to complete any necessary repairs, declutter, paint, arrange a staging consultation and determine which improvements are worth making before your home comes to market.
It also allows time to develop a pricing and marketing strategy around your preferred listing date rather than making those decisions under pressure.
Marketing Prepared Before You Need It
Depending on the property, seasonal photography may be only one part of the plan. Exterior video, drone photography and other marketing assets can also be captured in advance while the property is showing at its best.
The result is a more complete presentation of your home, regardless of the weather when it is ultimately listed.
Selling a Home That Needs Significant Updates
Not every home needs to be renovated before it comes to market. If your property requires significant updating, the right strategy is usually less about trying to make it look brand new and more about understanding where your time and money will have the greatest impact.
Start With the Updates Buyers Will Notice Most
Before committing to a major renovation, it is important to look at the home through the lens of today’s buyer.
Some improvements can help a property show better without requiring a large investment. Fresh paint, updated lighting, minor repairs, professional cleaning and thoughtful staging can make a noticeable difference, even when kitchens, bathrooms or flooring remain dated.
The goal is to present the home as clean, well maintained and easy for buyers to understand.
Not Every Renovation Will Pay You Back
A full kitchen or bathroom renovation shortly before selling can be expensive, disruptive and difficult to complete on a tight timeline. More importantly, there is no guarantee that you will recover the full cost through the sale price.
In some cases, buyers would rather purchase the home at a price that reflects the work required and make their own selections afterward.
Before investing in major updates, it is worth comparing the likely cost of the work with the potential impact on your sale.
Pricing Becomes Especially Important
When a home requires substantial updating, buyers will naturally compare it with both renovated properties and other homes that need work.
A strong pricing strategy accounts for the condition of the property, recent comparable sales, the cost and scope of likely improvements, and the competition currently available.
Pricing too close to fully renovated homes can make it difficult for buyers to justify the additional work. Pricing strategically can help position the property as an opportunity rather than simply a home that feels outdated.
Presentation Still Matters
Even if major renovations are not planned, presentation should not be overlooked.
Decluttering, removing excess furniture, improving lighting, cleaning thoroughly and completing obvious maintenance items can make the home feel more cared for and help buyers focus on its potential.
Professional staging can also help buyers see how existing spaces could function without trying to disguise the fact that updates may be required.
Focus on What Makes the Property Stand Out
Every home has features that make it unique and desirable, and those are the elements that should be brought to the forefront.
Lot size, location, floor plan, ceiling height, natural light, mature trees, neighbourhood, school access, privacy, architectural details and proximity to amenities can all become important parts of the marketing strategy.
The goal is to highlight the features buyers will value most and present the home in a way that clearly communicates what makes it special and sets it apart from the competition.
