Waterloo Region Real Estate Update for September 2026

I hope you had a great September and are looking forward to the leaves turning color, thanksgiving with your family and of course Halloween!

The stats are out and the market is still challenging for sellers and the buyers have choice and time to make decisions. We are seeing a lot of underpriced listing strategies, in the lower end of the price point,  which is proving tougher for the buyers in that category. Lets take a look at the numbers. 

The Waterloo Region real estate market continues to show a mix of challenges and opportunities as we move into the fall.

The big headline is that prices remain below where they were a year ago, but at the same time, we’re not seeing a huge buildup of inventory. In fact, overall months of supply actually decreased slightly.

Here’s what the latest numbers are telling us.

The average residential sale price was $703,054, which is 6.5% lower than last year. 

There were 412 residential properties sold through MLS, compared with 1,232 new properties coming onto the market.

Homes are also taking a little longer to sell, with the average days on market now at 33 days.

Interestingly, despite the lower prices, overall inventory has decreased by 5% to 3.8 months of supply.

So while buyers continue to have more negotiating power than they did during the very competitive markets of a few years ago, we’re not seeing an unlimited supply of homes sitting on the market either.

Detached homes continue to represent the largest portion of the market. There were 268 detached homes sold, with an average sale price of $812,433.

That’s a 5.2% decrease in price from last year, while inventory has also tightened slightly to 3.2 months of supply.

This is probably the most important segment to watch because detached homes continue to make up the majority of the market. Buyers have choices, but well-priced homes in desirable locations are still finding buyers.

The semi-detached market is actually showing a little more strength. There were 33 sales, with an average sale price of $625,453, representing a 0.6% increase over last year. Inventory increased by 9.5%, but there are still only about 2.3 months of supply. This is one of the tighter segments of the market right now and is a good example of why looking only at the overall average price doesn’t tell the whole story.

Condos continue to be one of the softer areas of the market. There were 43 condo sales, with an average sale price of $394,439. That’s a 10.8% decline from last year, and there are currently 6.9 months of supply.

That gives condo buyers considerably more choice and negotiating power compared with some of the other housing categories.

For sellers, pricing correctly from the beginning is particularly important in this segment.

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Townhomes have also seen some significant price pressure. There were 66 sales, with an average sale price of approximately $552,933, down 13.6% from last year.

There are currently 4.4 months of supply, although that’s actually an 8.3% decrease from last year.

Again, this shows why it’s important to look beyond the headline numbers. Prices are down considerably, but inventory isn’t necessarily getting worse.

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I think the simplest way to describe the current market is:

We’re still in a market where buyers have negotiating power, but we’re not seeing the kind of excessive inventory that would suggest the market is completely out of balance.

Prices have adjusted from the highs we saw a few years ago, and some property types—particularly condos and townhomes—have seen much larger declines than others. At the same time, overall inventory has actually tightened slightly.

For buyers, this means there are still opportunities to negotiate and take your time making a decision, but good properties that are priced properly shouldn’t automatically be expected to sit around forever.

For sellers, the message is even simpler:

Pricing matters. The market isn’t necessarily going to reward an optimistic asking price the way it did during the pandemic years. Buyers have choices, and they are paying close attention to value.

As always, the overall numbers are useful for understanding the direction of the market, but real estate is local. The value and marketability of an individual property can vary considerably depending on the neighbourhood, condition, price range and type of property.

If you’re thinking about buying, selling or just want to know what your particular home is worth in today’s market, give me a call. I’m always happy to have a conversation, with no obligation.

Have a wonderful Thanksgiving long weekend with your family!

Kevin 

October 7, 2026 | Categories: Buyers, Kitchener Waterloo, Loft Style, New Construction, Sellers, Uncategorized | Tags: condo buying, condo units, finance, first time buyer, housing-market, investing, kitchener, market update, real estate, realtor, remax, twin city realty, waterloo | Leave a comment