elitere | Dec. 18, 2025
As we move toward the close of 2025, the luxury real estate market is doing something we have not seen in a while: finding its footing. Across North America, and specifically here in Waterloo Region, the data points to a market defined less by volatility and more by balance, intention, and strategy. For sellers and buyers alike, this shift matters.
This update combines national luxury market trends with a deep dive into Waterloo Region to give homeowners, sellers, and investors a clear picture of where the market stands heading into early 2026.
November marked a recalibration month across the North American luxury real estate landscape. After a noticeable surge in October driven by increased inventory and sales activity, November brought a natural slowdown that aligns with typical late fall seasonality.
This pullback in new inventory played a significant role in slightly softer sales volumes. Buyer demand remains present, but fewer move-in-ready, design-forward homes limited transaction opportunities.
Despite this slowdown, pricing held firm. Homes sold closer to their asking prices, and median prices remained stable, reinforcing the market’s underlying strength.
While luxury buyers are generally less dependent on financing, interest rate stability continues to influence confidence and timing.
In Canada, the Bank of Canada held its overnight rate at 2.25%, signalling confidence in inflation moving toward its 2% target. This steady approach has created predictability in borrowing costs, which supports decision-making for both buyers and sellers.
Looking ahead to 2026, mortgage rates are expected to remain relatively stable, with the possibility of modest decreases later in the year. This environment favours thoughtful, well-timed moves rather than rushed decisions.
Across North America, today’s luxury buyer is deliberate. Purchasing decisions are increasingly guided by lifestyle alignment and long-term value rather than short-term market shifts.
Buyers are prioritizing:
Properties that lack these elements are facing greater scrutiny, while homes that deliver on lifestyle and future-proofing continue to perform well.
While national trends provide important context, real estate remains hyper-local. Waterloo Region’s luxury market shows its own distinct patterns.
The most active price range was $1,100,000 to $1,149,999, where demand remained strong. Inventory levels increased slightly year-over-year, but total sales dipped modestly, reinforcing a balanced environment rather than a buyer or seller-dominated market.
Attached luxury properties, including townhomes and upscale condos, continue to outperform. Limited inventory and consistent demand pushed this segment firmly into seller territory, especially in the $840,000 to $859,999 range.
For sellers, pricing and preparation matter more than ever. Buyers are selective, but they are acting quickly when the right property hits the market.
Homes that are well-staged, properly priced, and positioned as move-in ready are seeing strong results, even in a balanced market. Overpricing, however, is quickly penalized.
If you are considering selling in early 2026, this is a market that rewards strategy over speculation.
The luxury real estate market is entering 2026 with steady momentum rather than dramatic swings. Predictable interest rates, intentional buyers, and disciplined sellers are shaping a healthier, more sustainable market.
Success in the year ahead will come down to understanding local data, aligning expectations with market realities, and working with professionals who know how to position luxury properties effectively.
Whether you are planning to sell, buy, or simply stay informed, the current luxury market offers clarity and opportunity for those who approach it strategically.
If you would like a personalized breakdown of what these trends mean for your specific neighbourhood or property type in Waterloo Region, reach out anytime. The right information makes all the difference.
