Average sales prices across all property types are anticipated to drop by 4.5 per cent through the end of 2025 while a slight rise in the number of sales is expected at 2 per cent. The Kitchener-Waterloo real estate market in Q4 2024 experienced a buyer’s market (high inventory) similar to 2023. This is expected to remain the same for the rest of the current year. Compared to this time last year, conditions have remained similar, with ample listings giving buyers more choices and negotiating power. Average days on the market continue to be longer. In the end of September it is 25 DOM (compare with 21 DOM in September 2024).
Families are the main drivers of housing demand in the region, a trend expected to continue through to the end of the year. Young and middle-aged couples are also drawn to the area’s strong community feel and abundant amenities. However, economic uncertainty is causing hesitation among some potential buyers, keeping some of them on the sidelines. Buyers remain cautious as a result, while only highly motivated sellers are adjusting their price expectations to align with current market conditions. Barring renewed confidence or economic clarity, the market is likely to remain slow and competitive in the near term, with a relatively low buyer confidence to reflect.
Financial support from parents is increasingly seen as essential for achieving homeownership in the region. Economic uncertainty has led to a rise in conditional offers and largely eliminated multiple-offer bidding wars. Concerns about a weakening economy and potential job loss are causing many prospective buyers to remain cautious or stay out of the market altogether. That said, neighbouring communities in the region such as Laurelwood, Doon South, and Beachwood continue to be highly popular, attracting some buyers with their strong community appeal and close amenities.