Rising Inventory and Declining Sales the Trend for Waterloo Regions Housing Market in 2025

I hope you are having a wonderful holiday season with your families. I myself ate a little too much but really enjoyed getting together with family and friends over Christmas and New Years. 

Now that 2026 has started, the kids are back to school, I notice the gym is a little busier each day that I am there but that’s great, hopefully everyone can keep their new years resolutions!

The stats are out for last year for the real estate market so lets take a look…

There were 6,177 homes sold in Waterloo Region in 2025, a decrease of 8.8 per cent compared to 2024, and a 25.3 per cent compared to the previous ten-year average for annual sales.

On a monthly basis, 306 homes were sold in December, a decrease of 9.5 per cent compared to the same period last year and a decrease of nearly 19.5 per cent compared to the average number of homes sold in the previous ten years for the same month.

In Waterloo Region, we observed an increase in new listings coming onto the market in 2025, accompanied by softening sales and longer selling times. This trend occurred during a year when affordability remained a challenge for many aspiring homebuyers, as global and economic uncertainty contributed to a weaker housing market. With the downward pressure on housing prices, and more options for buyers, it proved to be a good year for those first-time buyers who were able to get into the market. 

Total residential sales in December included 192 detached homes (no change from December 2024), and 52 townhouses (down 39.1 per cent). Sales also included 35 condominium units (down 14.6 per cent) and 26 semi-detached homes (up 23.8 per cent).

For 2025, total residential sales included 3,779 detached (down 7.7 per cent), and 1,174 townhouses (down 14.4 per cent). Sales also included 727 condominium units (down 11.6 per cent) and 484 semi-detached homes (up 1.5 per cent).

In December, the average sale price for all residential properties in Waterloo Region was $716,911. This represents a 5.9 per cent decrease compared to December 2024 and a 0.5 per cent increase compared to November 2025.

• The average sale price of a detached home was $839,394. This represents a 6.0 per cent decrease from December 2024 and an increase of 1.4 per cent compared to November 2025.
• The average sale price for a townhouse was $568,249. This represents a 9.8 per cent decrease from December 2024 and a decrease of 4.4 per cent compared to November 2025.
• The average sale price for an apartment-style condominium was $366,784. This represents a 22.9 per cent decrease from December 2024 and a decrease of 13.1 per cent compared to November 2025.
• The average sale price for a semi was $601,535. This represents a decrease of 6.7 per cent compared to December 2024 and a decrease of 5.6 per cent compared to November 2025.

Year-to-date, the average sale price for all residential properties in Waterloo Region decreased 3.7 per cent to $754,199 compared to 2024.

• The year-to-date average price of a detached home was $876,896. This represents a 3.7 per cent decrease compared to 2024.
• The year-to-date average sale price for a townhouse was $611,256. This represents a 4.3 per cent decrease compared to 2024.
• The year-to-date average sale price for an apartment-style condominium was $437,084. This represents a 7.4 per cent decrease compared to 2024.
• The year-to-date average sale price for a semi was $635,412. This represents a decrease of 4.1 per cent compared to 2024.

Monthly MLS® Home Price Index Benchmark Price (HPI)
	Kitchener-Waterloo			Cambridge
Benchmark Type:	December 2025	Monthly % Change	Yr./Yr. % Change	December 2025	Monthly % Change	Yr./Yr. % Change
Composite	$640,100	-0.4	-8.8	$674,300	-1.6	-6.1
Single Family	$752,200	-0.3	-8.1	$714,100	-2.0	-5.8
Townhouse	$527,600	-0.6	-8.8	$597,100	-0.4	-4.5
Apartment	$392,000	-0.9	-11.6	$430,600	-1.3	-8.3

Annual MLS® Home Price Index Benchmark Price
	Kitchener-Waterloo		Cambridge
Benchmark Type:	2025	Yr./Yr. % Change	2025	Yr./Yr. % Change
Composite	$679,600	-5.4%	$712,200	-4.0%
Detached	$799,800	-5.1%	$756,300	-3.4%
Townhouse	$554,400	-6.3%	$617,500	-4.0%
Apartment	$415,500	-7.50%	$451,600	-5.9%

There were 375 new listings added last month, an increase of 6.5 per cent compared to December last year, and an 11.3 per cent increase compared to the previous ten-year average for December.

In 2025, 13,872 new listings were added, an increase of 5.2 per cent compared to 2024, and a 15.7 per cent increase compared to the previous ten-year annual average.

At the end of December, there were 1,188 homes available for sale in active status, representing a 15.9% increase from the same month last year. This number surpasses the previous ten-year average of 595 homes in December.

The total inventory across the market increased by 27.8 percent, resulting in a 2.3-month supply of all property types by the end of December. Condominium apartments had the highest inventory, with 4.9 months’ supply, followed by townhouses with 3.0 months’ supply and detached homes with 1.7 months’ supply. The number of months of inventory represents the time it would take to sell all current inventories at the current sales rate.

The average time to sell a home in December was 45 days, which is 6 days longer than the previous month. In December 2024, it took 36 days for a home to sell, and the five-year average was 24 days.

Average Sales Price – Municipality

Average Sales Price – Township

Monthly Sales By Property Type

Monthly Supply of Homes for Sale

Monthly Median Sales Price – By Property Type

Monthly Average Sales Price – By Property Type

Monthly Average Days on Market

Monthly Number of New Listings – By Property Type

Monthly Homes for Sale

Monthly Supply of Homes for Sale – By Property Type

If you have any questions at all, are thinking of making a move this winter into spring, or are wondering what your home might be worth, give me a call or text to 519-497-4646  or shoot me an email to kevinbakerrealestate@gmail.com and we can sit down for a coffee and chat about your family’s needs going forward.

Have a great weekend! 

Kevin