Market Shows Positive Month-Over-Month Momentum
The Waterloo Region housing market demonstrated encouraging signs of stabilization in September 2025, with prices trending upward across all property types compared to the previous month. While year-over-year comparisons show softening from 2024’s elevated levels, the month-over-month growth signals a market finding its equilibrium.
Positive Price Movement Month-Over-Month
September brought positive news, with average sale prices showing small increases across all property categories compared to August:
- Overall residential properties: $753,162 (up 3.2% from August)
- Detached homes: $858,872 (up 1.4% from August)
- Townhouses: $606,871 (up 1.8% from August)
- Condominium apartments: $442,086 (up 2.0% from August)
- Semi-detached homes: $621,026 (up 0.5% from August)
This month-over-month growth reflects typical seasonal momentum as the market transitions from summer into fall, demonstrating that well-priced properties continue to command strong prices.
Market Activity
In September, 502 homes changed hands through the MLS® System. While this represents a 4.7% decrease compared to September 2024, it reflects a more balanced marketplace where both buyers and sellers can make informed decisions without the pressure of the frenzied conditions seen in previous years.
Sales breakdown by property type:
- 325 detached homes
- 91 townhouses
- 51 condominium units
- 34 semi-detached homes
Understanding Current Inventory Levels
The market now offers considerably more choice for buyers, with 2,094 homes available for sale at the end of September—a 22.2% increase from last year and 79.5% above the ten-year average. New listings also remain robust, with 1,469 properties added to the market in September, representing an 11.0% increase year-over-year.
Current months of supply by property type:
- Condominium apartments: 7.3 months
- Townhouses: 4.8 months
- Detached homes: 3.3 months
- Overall market: 4.0 months
A balanced market typically has 4-6 months of supply, placing most segments near or approaching equilibrium conditions.
Who Benefits from Today’s Market?
First-time buyers are finding this market particularly advantageous. With increased inventory and more time to make decisions (average 32 days to sell), buyers can be selective and avoid rushed decisions. The townhouse and condominium segments, with higher months of supply, offer especially strong negotiating opportunities.
Move-up buyers benefit from the ability to sell and purchase simultaneously with less stress, as the market provides adequate inventory to find their next home while their current property sells.
Sellers with quality properties continue to see strong results, with well-presented homes still moving quickly and commanding fair market value, as evidenced by the month-over-month price increases.
Investors who act while many remain on the sidelines may find opportunities in today’s market conditions, particularly as inventory levels provide more selection and negotiating power than in recent years.
The Quality Factor: What’s Actually Selling
Here’s an important reality that statistics alone don’t capture: while inventory levels suggest abundant choice, many buyers are discovering that finding the right home remains challenging. The market has become distinctly two-tiered.
Move-in ready properties—those that are thoughtfully updated, properly priced, and well-presented—continue to sell quickly, often with multiple offers. These homes are proving that buyer demand hasn’t disappeared; it’s simply become more discerning.
Conversely, properties requiring significant repairs, updates, or renovation are sitting on the market considerably longer. Even within segments showing 4-7 months of supply, buyers are repeatedly seeing the same homes because those that meet their criteria have already sold.
This creates a paradox: inventory numbers suggest a buyer’s market with plenty of choice, yet motivated buyers often feel they’re competing for the same handful of desirable properties. The lesson is clear—presentation, condition, and pricing strategy matter more than ever.
Looking Ahead
The month-over-month price increases across all property types suggest the market may be finding its footing after the adjustments of the past year. With Waterloo Region’s strong fundamentals—a diverse economy, thriving technology sector, and robust talent pipeline—the foundation for long-term housing demand remains solid.
For buyers, the current environment offers time to be selective and the inventory to have choices. For sellers, the key to success lies in understanding that today’s buyers have options and will pay premium prices for quality, but will pass on properties that don’t meet their standards.
As we move into the fall market, working with an experienced REALTOR® who understands these nuances—and can properly position your property or help you identify true value—has never been more important.
