Waterloo Region Real Estate market shows signs of stabalizing in February

I hope you had a great weekend and are able to get out and enjoy some of the warmer weather we are expecting this week! 

The Real Estate market stats are out for February so lets take a look….

The Waterloo Region housing market showed signs of stabilization and resilience in February 2026, with a notable rebound in monthly sales activity despite continued year-over-year declines. Market conditions suggest the region may be finding a price floor after the corrections seen over the past year, while inventory remains relatively tight.

A total of 340 homes sold in February, representing an 8.1% decrease compared to February 2025. However, on a month-over-month basis, sales increased by 25.5%, indicating renewed buyer activity after a slower start to the year. This surge in monthly sales may help restore seller confidence as the spring market approaches.

The average sale price in Waterloo Region was $725,310, down 5.6% year-over-year. Price trends varied slightly by sub-market:

• Kitchener–Waterloo: The MLS® Home Price Index remained unchanged month-over-month, but is down 9.3% year-over-year.
  
• Cambridge: The HPI rose 1.0% month-over-month, though still down 8.2% year-over-year.
  

The stabilization of prices between January and February, particularly in Kitchener-Waterloo, suggests the market may be bottoming out following the declines seen throughout 2025.

Market supply remains relatively balanced. New listings totaled 740 properties, representing a 15.8% decline year-over-year and a 1.6% decrease month-over-month. The overall months of inventory sits at 2.6 months, unchanged from February 2025.

Total inventory is 8.0% lower than last year, which continues to limit supply and could help support prices if buyer demand strengthens in the coming months

Homes are taking longer to sell compared to last year. The average days on market increased to 37 days, a 54.2% increase year-over-year. This indicates buyers remain more cautious and selective, even as activity begins to improve.

Overall, the February data points to a market that is gradually stabilizing. While prices and sales remain below last year’s levels, the strong monthly rebound in sales and stable price trends suggest the Waterloo Region housing market is adjusting to current economic conditions. If demand continues to build and inventory remains constrained, the region could see increased momentum heading into the spring market.

If you have any questions at all, are thinking of making a move this 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 week! 

Kevin