elitere | Mar. 24, 2026
The Waterloo Region real estate market is beginning to show clearer signs of stabilization as we move into the spring market. February recorded a total of 339 home sales, representing an 8.1% decrease compared to February 2025, while year-to-date sales are down 13.4%.
Despite the year-over-year decline, activity improved meaningfully compared to January, indicating stronger engagement from buyers following a slower start to the year.
At the same time, 737 new listings came to market in February, down 16.1% year-over-year, contributing to a total of 1,284 active listings at month end, a decrease of 8.4% compared to the same time last year.
While inventory has declined modestly year-over-year, it remains elevated relative to recent market cycles, continuing to provide buyers with more choice and negotiating leverage.
The sales-to-new listings ratio is approximately 46%, placing the Waterloo Region housing market within a balanced to buyer-leaning range.
Compared to January, sales activity increased while pricing remained relatively stable, reinforcing early signs that the market may be beginning to level out.
We are seeing increased showing activity and more engagement from qualified buyers; however, decision-making remains measured, with conditions and negotiation playing a role in most transactions.
Activity remains highly segmented. Well-priced homes are selling, while overpriced homes are sitting longer on the market.
The overall average sale price in Waterloo Region was $727,440 in February, representing a 5.5% decrease compared to February 2025. Year-to-date, the average price is $731,274, down 4.1%.
The median sale price across all property types was $690,000, down 4.2% year-over-year and 5.6% year-to-date.
From a month-over-month perspective, pricing remained relatively stable, indicating that the rate of decline is beginning to ease.
Single Family Homes
Townhomes and Condominiums
Price corrections remain more pronounced in the townhouse and condominium segment, while detached homes in Waterloo Region have shown greater stability.
The average days on market increased to 37 days, up 54.2% compared to February 2025. Year-to-date, properties are taking an average of 41 days to sell.
Buyers are taking more time, completing due diligence, and negotiating more frequently.
The average list-to-sale price ratio was 99.5%, down from 102.3% one year ago.
This indicates that most homes are selling at or slightly below asking price.
By property type:
This reflects a balanced market overall, with more buyer-friendly conditions in the townhouse and condo segment.
The Housing Affordability Index increased to 64, up 10.3% year-over-year, reflecting improved affordability due to lower home prices and stable interest rates.
The Housing Value Index declined:
The Bank of Canada held its overnight rate at 2.25%, while inflation eased to approximately 1.8%.
Slower economic growth and a softening labour market are contributing to a more cautious but improving housing market environment.
This is a strategy-driven market.
Homes that are priced correctly and presented well are selling. Homes that are not aligned with market value are sitting and requiring price adjustments.
Buyers are highly value-driven and are quick to move on from overpriced properties.
Buyers currently benefit from:
However, well-priced homes in desirable neighbourhoods are still competitive.
The Waterloo Region real estate market is in a transition phase.
Sales activity is improving month-over-month, pricing is stabilizing, and interest rates have remained steady.
As we move into the spring market, continued stability in interest rates and increasing buyer activity will be key indicators of where the market is headed.
This is a balanced to buyer-leaning market where outcomes are driven by pricing, presentation, and execution.
If you are considering buying or selling in Waterloo Region, a data-driven strategy is essential in today’s market.
