elitere | Feb. 11, 2026
The market has slowed and become more balanced, with buyers taking more time to make decisions. Prices have softened across all housing types, improving affordability compared to this time last year. Inventory remains relatively controlled, which is helping support values despite fewer overall sales.
Detached homes continue to be the most resilient segment, while townhomes and condos are currently more favourable for buyers.
As we move through Q1 2026, the local market continues to adjust after several years of rapid price growth and highly competitive conditions.
January’s data confirms what many buyers and sellers are already experiencing on the ground. The market is slower, more balanced and noticeably more price-sensitive. Both sides are taking longer to commit, and negotiations are becoming more thoughtful and data-based.
Nationally, Canadian home sales declined in January and Waterloo Region followed a similar pattern. Sales eased from December into January, new listings pulled back and days on market increased. This slowdown does not reflect a lack of interest in home ownership. Instead, it reflects a market recalibrating to affordability pressures, steady borrowing costs and more cautious buyer behaviour.
In practical terms, buyers now have more choice and more time. Sellers are seeing the strongest results when pricing and presentation clearly match today’s conditions, not last year’s expectations.
January detached home statistics
Detached homes remain the most resilient segment in the Waterloo Region market, particularly in established and in-demand neighbourhoods.
However, pricing accuracy matters more than it has in years. Sellers who anchor their expectations to peak market conditions are seeing longer days on market and more negotiation. Homes that are positioned realistically from the start continue to attract serious buyers and sell with far less friction.
The townhouse and condo segment is currently more buyer-friendly. With longer marketing times and more available options, buyers have greater leverage and are negotiating more confidently. Sellers who are pricing aggressively or relying on last year’s benchmarks are finding it harder to secure firm offers.
The strongest results in this segment are coming from homes that are clearly positioned on value and prepared properly before hitting the market.
January 2026 market statistics across all property types
Source: Cornerstone Association of REALTORS®
Waterloo Region is firmly in a balanced and transitional market. Sales activity is lower, but inventory is not surging. Instead, the market is being driven by strategy, pricing discipline and product quality rather than urgency or fear of missing out.
Buyers are more selective. Sellers are being rewarded when their homes are well prepared, competitively priced and professionally positioned from the outset.
One of the most important trends emerging right now is improving affordability combined with relatively controlled inventory. As prices have softened and borrowing conditions have stabilized, more buyers are starting to re-enter the market, especially those who delayed decisions over the past year. This sets the stage for a more active spring market, but only for homes that are prepared and positioned correctly from day one.
Today’s market rewards preparation, pricing precision, strong presentation and thoughtful promotion. Sellers who are realistic, data-driven and proactive are seeing far better outcomes than those testing the market without a clear plan.
Buyers who remain patient, but are ready to act decisively when the right opportunity appears, are gaining real negotiating power.
The right time to buy or sell is never determined by headlines or seasonality alone. It comes down to your personal goals, your financial comfort and your longer-term plan. Market data provides context, but clarity comes from understanding how these trends apply specifically to your situation in the Waterloo Region market.
