The Waterloo Region housing market continued its cooling trend in November, presenting new opportunities for buyers as inventory levels reached their highest point in over a decade.
Market Overview
November saw 465 homes sold through the MLS® System, marking a 14.8% decrease compared to last year and nearly 25% below the ten-year average for this month. While seasonal slowdowns are typical at this time of year, the softening demand has created a notably different market environment.
Sales by Property Type
The breakdown of November sales reveals varied performance across different housing categories:
- Detached Homes: 274 sales (down 18.0%)
- Townhouses: 91 sales (down 20.9%)
- Condominiums: 59 sales (up 11.3%)
- Semi-Detached: 41 sales (down 6.8%)
Condominiums were the only property type to show sales growth year-over-year, though this comes alongside the steepest price decline (down 6.3%) and the highest inventory levels at 6.4 months’ supply.
Pricing Trends
The overall average sale price for residential properties reached $713,751 in November, reflecting a 5.4% decrease from last year and a 2.7% decline from October.
Average Prices by Property Type:
- Detached homes: $827,617 (down 4.3% year-over-year)
- Townhouses: $595,337 (down 3.1% year-over-year)
- Condominiums: $422,056 (down 6.3% year-over-year)
- Semi-detached: $635,375 (down 1.4% year-over-year)
For a more accurate picture of market trends, the MLS® Home Price Index shows benchmark prices declining across the region, with Kitchener-Waterloo’s composite benchmark at $642,600 (down 8.7% year-over-year) and Cambridge at $685,400 (down 6.2% year-over-year).
Inventory and Market Conditions
Perhaps the most significant shift in November was the inventory surge. With 1,757 active listings at month’s end—a 15.6% increase from last year—buyers now have the most selection available in November in over a decade.
The market currently sits at a 3.4-month supply overall, with notable variations:
- Condominiums: 6.4 months’ supply
- Townhouses: 4.1 months’ supply
- Detached homes: 2.8 months’ supply
Homes are taking longer to sell, averaging 39 days on market compared to 27 days last November and well above the five-year average of 19 days.
What This Means for Buyers and Sellers
For First-Time Buyers: The current market conditions present genuine opportunity. Higher inventory levels combined with lower interest rates create favourable negotiating conditions. You can explore options thoroughly and work with your REALTOR® to negotiate from a position of strength.
For Upsizers: This market offers a unique advantage for those looking to move up to a larger home. The increased inventory and longer market times mean you can include protective conditions like the sale of your current property in your offers. More importantly, when both buying and selling in the same market, the proportional math works in your favour—while your current home may sell for less than it would have a year ago, the larger home you’re purchasing has likely decreased even more in dollar terms, making the upgrade more affordable than it would have been in a hot market.
For Sellers: With increased competition and longer market times, proper pricing and presentation are more critical than ever. Working closely with an experienced REALTOR® to position your home competitively will be key to achieving a successful sale.
Looking Ahead
As we move into winter, the combination of Waterloo Region’s continued appeal as a desirable place to live and the lower interest rate environment offers reason for optimism. While the market has cooled considerably, these conditions often bring buyers who have been waiting on the sidelines back into the market.
Whether you’re considering buying or selling, navigating this shifting market requires expert guidance. Contact us to discuss how current conditions might affect your real estate goals.
