Waterloo Region Housing Market: December 2025 Analysis and a Look Back at the Year

The latest market statistics from the Cornerstone Association of REALTORS® paint a picture of a housing market in transition. As we analyze the December 2025 and full-year data, several key trends emerge that will shape our market moving forward.

Sales Volume: A Market in Adjustment

The Waterloo Region saw 6,177 home sales in 2025, representing an 8.8% decrease from 2024 and a significant 25.3% drop compared to the ten-year average. This decline reflects the broader economic uncertainties and affordability challenges that characterized 2025.

December specifically saw 306 sales, down 9.5% year-over-year and 19.5% below the ten-year December average. This consistent downward trend in sales volume indicates a market that's cooling from the heated activity of previous years.

Price Analysis: Correction Across All Segments

Perhaps the most significant story of 2025 was the price correction across all property types. Let's take a look:

Apartment-Style Condominium Market

Experienced the most dramatic adjustment with December prices down 22.9% year-over-year to $366,784. The annual average of $437,084 represents a 7.4% decrease, suggesting this segment faced the greatest pressure.

Townhouse Segment

December saw a 9.8% price decline to $568,249, with annual averages down 4.3% to $611,256. This segment also experienced the steepest sales decline at 39.1% in December.

Detached Homes

The largest segment by volume showed more resilience with December prices at $839,394 (down 6.0%) and annual averages of $876,896 (down 3.7%). Sales volumes remained stable in December with 192 transactions.

Semi-Detached Properties

Interestingly, this was the only segment to show sales growth, up 23.8% in December and 1.5% for the full year, despite price declines of 6.7% ($601,535) and 4.1% ($635,412), respectively.

Market Dynamics: Supply and Demand Rebalancing

The market showed clear signs of rebalancing in 2025:

• Inventory Growth: Active listings increased 15.9% to 1,188 homes by year-end

• New Listings: 13,872 new listings in 2025 (up 5.2% from 2024)

• Market Timing: Average days on market extended to 45 days in December vs. 36 days in 2024

• Supply Metrics: 2.3-month supply overall, with condos at 4.9 months, townhouses at 3.0 months, and detached at 1.7 months

Market Outlook: Stabilization on the Horizon

Looking ahead to 2026, several factors suggest market stabilization.

Government Intervention

The announced HST removal on new homes up to $1 million for first-time buyers represents significant policy support that could stimulate demand.

Affordability Improvements

Price corrections have improved affordability metrics, posing a window for those who have been on the fence about entering the market.

Inventory Balance

While inventory has increased, the 2.3-month supply suggests we're moving toward a more balanced market rather than oversupply.

Strategic Implications

Buyers are in an increasingly favorable position with more choice, longer decision periods, and improved affordability. The new government incentives provide additional support for first-time buyers.

Sellers need to adjust expectations and strategies. Proper pricing, professional presentation, and realistic timelines are more important than ever in this shifting market.

Investors may find opportunities in the price corrections, particularly in segments like condominiums that have seen the most significant adjustments. New builds also pose unique opportunity with builder incentives on the rise.

Final Thoughts

The January 2026 market statistics reveal a housing market in the midst of a healthy correction. After years of rapid price growth and intense competition, the Waterloo Region is transitioning to a more balanced market that offers opportunities for both buyers and sellers who approach it with realistic expectations and proper professional guidance.

This rebalancing, while challenging for some, creates a more sustainable foundation for long-term market health and improved accessibility for homebuyers across all segments.

Want to check out what is currently on the market?

Browse active listings across the Waterloo Region here.