March 11, 2025
Despite February’s heavy snowfall and looming economic uncertainties around US tariffs, the Waterloo Region real estate market continues to present fascinating dynamics and opportunities for both buyers and sellers. Let’s dive into the latest market statistics and what they mean for you.
A Market Divided: Simultaneous Buyer’s and Seller’s Markets
One of the most interesting phenomena we’re currently witnessing is a market that simultaneously favours both buyers and sellers depending on property type:
- Overall Market: 2.6 months of inventory (balanced market)
- Detached Homes: Just 1.8 months supply (firmly in seller’s market territory)
- Condominium Apartments: 5.9 months supply (clearly a buyer’s market)
- Townhouses: 3.6 months supply (leaning toward a buyer’s market)
This unusual split means that market-wide averages don’t accurately reflect the reality of specific property segments. As a buyer or seller, understanding which side of this divide your property falls on is crucial for making informed decisions.
Price Trends Show Resilience Despite Challenges
The February statistics from the Cornerstone Association of REALTORS® reveal some encouraging price stability despite overall sales volume decreasing by 26.1% compared to February 2024:
- Average sale price across all properties: $767,800 (UP 1.3% year-over-year and 1.8% month-over-month)
- Detached homes: $900,003 (UP 1.0% year-over-year and 2.1% from January 2025)
- Townhouses: $613,924 (DOWN 2.7% year-over-year and 2.6% month-over-month)
- Condominium apartments: $437,000 (DOWN 5.8% year-over-year and 7.2% month-over-month)
- Semi-detached homes: $670,352 (DOWN 0.5% year-over-year but UP 6.6% month-over-month)
Why This Is a Smart Time for Detached Home Buyers
For buyers seeking detached homes, especially affordable ones, current market conditions present a strategic opportunity:
- Limited future supply: Smaller detached homes are becoming increasingly rare as new construction focuses on larger detached properties, townhouses, and condominiums.
- Enduring demand: Most buyers continue to prefer exactly what’s in limited supply – a traditional detached home in an established neighbourhood.
- Less competition: Current economic uncertainty has sidelined some buyers, creating windows of opportunity with more favourable conditions and potentially better prices.
Sellers of Move-In Ready Homes Still Hold Advantages
Despite the overall sales slowdown, it’s far from a bad time to sell, particularly if your property is:
- Move-in ready: With fewer well-maintained, immediately habitable homes available, those that hit the market stand out significantly.
- Detached: With just 1.8 months of inventory, detached homes remain in the seller’s market territory.
- Properly presented: Homes that show well are still moving quickly and constitute a large portion of successful sales.
The Psychology Behind Real Estate Cycles
One consistent pattern in real estate is that most buyers retreat during uncertainty and surge forward when confidence returns. While this is a natural response, those who have studied market cycles understand that the best deals often materialize during periods of hesitation.
Remember: To find affordable options with favourable buying conditions, you need some uncertainty in the market!
Market Statistics At a Glance
- Total homes sold in February: 363 (down 26.1% from February 2024)
- New listings added: 858 (up 7.3% from February 2024)
- Total active listings: 1,450 (up 55.7% from February 2024)
- Average days on market: 24 days (unchanged from February 2024)
Whether you’re looking to buy or sell in this uniquely divided market, understanding which side of the equation your property falls on can make all the difference in your success. Looking to make a strategic move? Let’s chat about how these trends align with your real estate goals!
Data source: Cornerstone Association of REALTORS® (Cornerstone) MLS® System, February 2025
