Economic Uncertainty Tempers Waterloo Region’s Real Estate Market Despite Growing Inventory
WATERLOO REGION, ON (June 6, 2025) —In May, a total of 675 homes were sold in the Waterloo Region via the Multiple Listing Service® (MLS®) System of the Cornerstone Association of REALTORS® (Cornerstone). This represents a 9.3 per cent decrease compared to the same period last year and a decline of 26.2 per cent compared to the average number of homes sold in the previous ten years for the same month.
“Even with home prices on the decline, a cloud of uncertainty looms over the economy, largely fueled by tariffs and lingering concerns about job security. This environment is causing potential buyers to hesitate, keeping them from making their move and entering the market,” says Christal Moura, spokesperson for the Waterloo Region market. “It’s not that we lack buyers or inventory; rather, consumer confidence is not at the level necessary to see stronger home sales.”
Total residential sales in May included 427 detached homes (down 8.4 per cent from May 2024), and 132 townhouses (down 1.5 per cent). Sales also included 67 condominium units (down 20.2 per cent) and 48 semi-detached homes (down 18.6 per cent).
In May, the average sale price for all residential properties in Waterloo Region was $789,154. This represents a 3.6 per cent decrease compared to May 2024 and a 0.8 per cent increase compared to April 2025.
- The average price of a detached home was $909,897. This represents a 3.7 per cent decrease from May 2024 and a decrease of 1.0 per cent compared to April 2025.
- The average sale price for a townhouse was $634,320. This represents a 3.5 per cent decrease from May 2024 and an increase of 3.1 per cent compared to April 2025.
- The average sale price for an apartment-style condominium was $431,944. This represents a 6.7 per cent decrease from May 2024 and a decrease of 9.4 per cent compared to April 2025.
- The average sale price for a semi was $652,627. This represents a decrease of 6.7 per cent compared to May 2024 and a decrease of 1.4 per cent compared to April 2025.
“Right now, we’re seeing a market that is different from the frenzied market of a few years ago, but that’s a good thing for buyers who have more breathing room to make decisions,” says Moura. “The fundamentals that make Waterloo Region attractive – our diverse economy, strong tech sector, world-class educational institutes and stable governance – continue to strengthen. Waterloo Region has proven time and again that it is a solid place to invest and put down roots.”
There were 1,663 new listings added to the MLS® System in Waterloo Region last month, an increase 1.4 per cent compared to May last year and a 15.6 per cent increase compared to the previous ten-year average for May.
The average time to sell a home in May was 24 days, which was the same in the previous month. In May 2024, it took 16 days for a home to sell, and the five-year average was 14 days.
The statistics provided are based on information from the ITSO MLS® System. Multiple MLS® Systems operate within Ontario, and while none can be guaranteed to include every property listed or sold within a given area, they effectively illustrate market trends.
Navigating a Buyer's Market: Understanding Key Dynamics for Home Buyers and Sellers
The term "buyer's market" is frequently mentioned in real estate, but what does it truly mean? Understanding the dynamics of a buyer's market can help you navigate the property landscape more effectively, whether you're looking to purchase or sell a home in a buyer's market.
A buyer's market occurs when the supply of homes exceeds the demand. This situation typically lowers home prices and gives buyers greater negotiating power. In contrast, a seller's market arises when demand surpasses supply, resulting in rising prices and less room for negotiation.
One of the primary indicators of a buyer's market is a surplus of available homes. When there are more properties for sale than qualified buyers, it often leads to excess inventory. This abundance puts downward pressure on home prices, as sellers must compete against one another to attract buyers.
In a buyer's market, homes typically remain on the market longer. While the average days on the market can vary by location, type of property and price point, an increase in this metric indicates that buyers have more options and are taking their time to find the right home.
You'll often find that home prices are stagnant or declining in a buyer's market. Sellers may need to lower their asking prices to entice buyers, which can encourage those who have been hesitant to make a purchase.
With an increase in inventory and a decrease in competition, buyers are able to negotiate more favourable terms and prices. In a buyer's market, it is common for buyers to include conditions in their offers. For example, a buyer might make an offer that is contingent on a home inspection. If the inspection reveals any defects, the buyer may request a price reduction or ask the seller to complete the repairs.
Several factors can contribute to a buyer's market, including an economic downturn, market uncertainty, interest rate fluctuations, etc.
Get in touch for more information about how the market could affect your next move!
A buyer's market occurs when the supply of homes exceeds the demand. This situation typically lowers home prices and gives buyers greater negotiating power. In contrast, a seller's market arises when demand surpasses supply, resulting in rising prices and less room for negotiation.
One of the primary indicators of a buyer's market is a surplus of available homes. When there are more properties for sale than qualified buyers, it often leads to excess inventory. This abundance puts downward pressure on home prices, as sellers must compete against one another to attract buyers.
In a buyer's market, homes typically remain on the market longer. While the average days on the market can vary by location, type of property and price point, an increase in this metric indicates that buyers have more options and are taking their time to find the right home.
You'll often find that home prices are stagnant or declining in a buyer's market. Sellers may need to lower their asking prices to entice buyers, which can encourage those who have been hesitant to make a purchase.
With an increase in inventory and a decrease in competition, buyers are able to negotiate more favourable terms and prices. In a buyer's market, it is common for buyers to include conditions in their offers. For example, a buyer might make an offer that is contingent on a home inspection. If the inspection reveals any defects, the buyer may request a price reduction or ask the seller to complete the repairs.
Several factors can contribute to a buyer's market, including an economic downturn, market uncertainty, interest rate fluctuations, etc.
Get in touch for more information about how the market could affect your next move!
