elitere | Oct. 28, 2025
The latest October 2025 Luxury Market Report from The Institute for Luxury Home Marketing paints a clear picture: the North American luxury real estate market is stabilizing after several years of volatility. Rather than the dramatic highs and lows seen during the pandemic recovery, today’s luxury sector is defined by moderation, discernment, and long-term value.
Across North America, luxury single-family home sales increased by 15.2% year-over-year, even as inventory rose nearly 14%. That combination of more listings and more sales reflects a healthier, more balanced environment. Buyers now have more choice, but well-positioned properties are still moving quickly.
Median sold prices rose 2.9%, while list prices increased only 0.8%, suggesting sellers are becoming more realistic and buyers are responding decisively to homes that align with lifestyle and quality expectations.
Luxury buyers in late 2025 are prioritizing design, location, and long-term livability. They are no longer chasing price spikes. Instead, they’re looking for intrinsic value — properties that justify their price through craftsmanship, architectural integrity, and amenities that support modern living.
The Institute reports that, overall, the number of luxury homes sold this year has outpaced 2024 levels by nearly 5% despite slight month-to-month slowdowns since summer. This is being driven largely by stronger economic sentiment and early signs of interest rate relief.
Recent rate cuts by both the Federal Reserve and the Bank of Canada — the first in over a year — have improved confidence in high-end real estate markets. Mortgage rates remain higher than pre-pandemic norms but are now at their lowest levels of 2025. This shift has been enough to encourage more movement from both domestic and international buyers.
In Canada, the picture is mixed. Alberta remains firmly in seller’s territory, supported by strong migration and affordability relative to other provinces. Ontario and British Columbia are showing a more balanced tone, though condo markets in large urban centres have softened as global capital flows adjust and foreign investment regulations continue to tighten.
Despite those headwinds, the luxury segment overall continues to perform better in 2025 than in 2024. Market slowdowns are being viewed as a recalibration rather than a retreat — a sign of maturity and sustainable growth rather than volatility.
The Waterloo Region market mirrors the national trend toward equilibrium. Both buyers and sellers are recalibrating expectations, and the result is a market that’s steady, not stalled.
The single-family luxury market in Waterloo Region is classified as balanced, with a 15% sales ratio, meaning that neither buyers nor sellers hold a dominant position.
Key Figures for September 2025:
This data shows a slower but more predictable pace. While the number of sales has decreased, inventory growth suggests healthier supply levels and less urgency-driven decision-making. Buyers are taking time to evaluate options, but well-prepared homes that meet expectations are still commanding strong attention.
The most active price band for single-family luxury homes sits between $3.6 million and $3.99 million, which achieved a 100% sales ratio — a clear sign that there’s still depth of demand at the upper end of the market.
The attached luxury segment, which includes upscale condos and townhomes, is currently classified as a seller’s market, with a 23% sales ratio.
Key Figures for September 2025:
This segment is showing resilience. The sharp year-over-year rise in sales, shorter marketing times, and higher sale-to-list ratios all point to strong buyer engagement. Many of these buyers are professionals, downsizers, or investors seeking low-maintenance luxury close to Waterloo’s key employment hubs, universities, and transit access.
The most active price band for attached homes sits between $800,000 and $820,000, with a 150% sales ratio, indicating demand exceeding available supply.
In a balanced or slightly seller-leaning market, strategy is everything. Buyers have more inventory to choose from, but they are also more decisive about homes that show value.
For sellers, this means:
Even with slightly fewer transactions, sellers who align with market realities are achieving prices near asking. The small increase in time on market reflects a normalization of buyer behavior, not a lack of interest.
Heading into 2026, luxury real estate is expected to experience measured expansion rather than speculative growth. As interest rates continue to stabilize, both local and international buyers are expected to re-enter the market with renewed confidence.
In Waterloo Region, fundamentals remain strong. The area’s combination of innovation-driven employment, highly ranked schools, and access to lifestyle amenities continues to attract affluent buyers from the GTA and beyond. Inventory levels are expected to remain moderate, which will help sustain price stability across both single-family and attached segments.
Nationally, The Institute forecasts that luxury real estate will continue to perform above 2024 levels, with balanced supply and steady absorption defining early 2026.
The luxury market has reached a new phase of balance. Across North America and here in Waterloo Region, activity is no longer being fueled by emotion but by confidence, data, and long-term thinking.
Buyers are willing to pay for homes that offer value and lifestyle alignment, while sellers who adapt quickly to this more mature market environment are seeing strong, consistent results.
For those considering selling, this is an excellent time to prepare strategically — focus on presentation, align pricing with real market data, and leverage local expertise. A well-prepared home is still a powerful advantage in today’s balanced luxury market.
