elitere | Jan. 13, 2025
The Waterloo Region real estate market ended 2024 on a strong note, with steady growth and a solid December finish. Lower interest rates helped reignite buyer activity, making it a positive close to the year.
Looking forward to 2025, the market is full of potential. Interest rates are expected to continue dropping, and new policies are making homeownership more accessible. Trudeau’s resignation marks a pivotal moment for Canada’s housing market, providing an opportunity to reassess priorities, address gaps, and expand programs that create meaningful opportunities for both buyers and sellers.
We expect a balanced market this year, with detached homes leading the way and inventory adjustments creating more opportunities for both sides of the market. As always, we’re here to help you navigate these changes and reach your real estate goals.
In 2024, 6,777 homes were sold through the MLS System of the Cornerstone Association of REALTORS (Cornerstone), reflecting a 2.8% increase from 2023. However, sales remained 18.9% below the five-year average.
The average sale price for all residential properties in December was $763,840, a 3.3% increase from the previous year and up 1.4% from November. The year-to-date average sale price was $784,343, down slightly by 0.3% compared to 2023.
The market outlook for 2025 remains promising. Interest rates are expected to drop further, with the next Bank of Canada announcement in late January. Projections suggest rates could fall to 2%–3% by mid-year, creating better conditions for buyers.
New policies, such as 30-year amortizations and increased insured mortgage caps, are giving first-time buyers and those looking to upsize a boost.
Detached homes will likely continue to lead, while condos may take longer to rebound fully. A balanced market with some seller-leaning areas could emerge as inventory levels adjust.
However, don’t expect the rapid price surges of 2021 and early 2022. Smart buying means staying within your means and focusing on long-term investments. The best time to make a move is when it aligns with your goals—not when trying to time the market.
Trudeau’s resignation adds another layer of change, offering Canada a chance to reassess housing priorities and build better opportunities for all.
Curious about how these shifts might impact your plans? Want to know your home’s current value? Reach out—we’re here to help you make confident real estate moves in 2025!
