elitere | Dec. 9, 2025
The Waterloo Region real estate market continued to cool in November, providing important insights for homeowners, buyers, and investors planning for 2026. A total of 465 homes sold through the MLS System of the Cornerstone Association of REALTORS — a 14.8% drop from the previous year and nearly 25% below the 10-year November average.
While seasonal slowdowns are typical, this year’s cooling trend is amplified by broader economic conditions, including affordability constraints, cautious consumer sentiment, and shifting borrowing conditions. Despite this cooling, Kitchener-Waterloo remains one of Ontario’s strongest long-term real estate markets, supported by a growing population, strong academic institutions, and a resilient tech and innovation ecosystem.
With interest rates trending downward and inventory rising, industry experts anticipate renewed buyer activity heading into 2026.
Detached homes continue to experience the largest decline in sales volume, reflecting affordability challenges and buyer caution in the higher-price segments.
Townhouses remain attractive for move-up buyers and young families, but demand softened amid rising inventory.
Condos were the only segment with a sales increase — signalling a shift toward affordability as buyers look for lower-price entry points.
Semi-detached properties remain popular with both first-time and move-up buyers due to their mix of affordability and space.
The average sale price across all residential property types was $713,751, down 5.4% year-over-year and 2.7% from October.
Inventory growth is giving buyers more leverage, easing competition and helping move the market toward balanced conditions.
Homes took 39 days on average to sell — up from 31 days in October
The RE/MAX Canada Housing Outlook for Kitchener-Waterloo predicts a balanced and stable market heading into 2026.
(Full report here)
Economic uncertainty, job restructuring, and inflation have influenced local housing trends. Several large employers relocating out of the region have also contributed to shifting demand.
Prices are expected to remain flat through early 2026, with a potential slight decrease of up to 3%. Stable interest rates and steady inventory should prevent sharp fluctuations.
Most Desirable Neighbourhoods
These neighbourhoods continue to attract strong buyer demand due to established communities, greenery, larger lots, and long-term value.
Most In-Demand Property Types
Single-detached homes remain the leading choice, followed by townhomes and condos among budget-conscious buyers.
Buyer Demographics & Budgets
New Construction & Development
New subdivisions and walkable “six-minute neighbourhoods” will expand, though condo developments may face delays due to construction costs and financing timelines.
Interest Rates
Easing rates should boost affordability and encourage more buyers to re-engage in 2026.
Rising Rental Prices
High rents are making it difficult for renters to save for down payments — a trend likely to continue into 2026.
Investor Behaviour
Due to ongoing challenges with the Landlord and Tenant Board, many investors are choosing to exit the market, opening opportunities for end users.
2026 may be an ideal time to enter the Kitchener-Waterloo real estate market, especially for those previously priced out.
Well-prepared listings will stand out in a balanced market.
Is 2026 a good time to buy in Kitchener-Waterloo?
Yes. Increased inventory, stable pricing, and improving borrowing conditions create strong opportunities for buyers.
Will housing prices go down further in 2026?
Prices are expected to stay mostly flat, with a slight potential decrease of up to 3%.
What neighbourhoods hold the strongest value?
Beechwood, Westmount, Colonial Acres, and other mature neighbourhoods continue to outperform due to lot size, schools, and community appeal.
Are investors leaving the market?
Some are, due to LTB challenges — but this creates opportunities for buyers and long-term investors.
What property type will be most popular in 2026?
Single-detached homes remain the most sought-after, followed by townhomes and entry-level condos.
Overall, 2026 is shaping up to be a strategic year for real estate decisions across Waterloo Region. Balanced conditions, easing interest rates, and expanded inventory offer opportunities for buyers, sellers, and investors alike. Understanding neighbourhood trends and leveraging local expertise will be key to navigating this evolving market.
If you’d like a personalized discussion about your real estate plans, we’re always here to help.
