Higher housing inventory, softer sales to start 2025 in Waterloo Region

A for sale sign hangs in front of a house in this March 2013 file photo. (AP Photo, Steven Senne)

Housing listings in Waterloo Region were up in the first month of 2025, compared to same time last year, but the number of homes that actually sold were down.

According to the Cornerstone Association of Realtors, there were nearly 50 per cent more active listings in January 2025 over January 2024, with inventory levels well above the 10-year average.

“We’re seeing more choice for buyers in the market,” Christal Moura, a Cornerstone spokesperson for the Waterloo Region market, said in a news release.

Softened sales

In January 2025, 329 homes were sold in the region. That’s a decrease of 12 per cent compared to the same period last year, and a drop of nearly 19 per cent compared to the average number of homes sold in the previous 10 years for the same month.

Cornerstone said, despite sales being down, the increased inventory levels are creating more balanced conditions between buyers and sellers.

The average sale price for all residential properties in Waterloo Region was $755,859, nearly the same as it was in January 2024 and December 2024.

“In an expected move, the Bank of Canada lowered its policy rate by 25 basis points to 3 per cent on January 29, 2025, helping to bring down the cost of borrowing. This reduction was welcome news for potential homebuyers,” Moura said. “However, with a potential trade war with the U.S. still looming, it’s difficult to predict what will happen when the bank makes its next interest rate announcement on March 12.”

Moura also highlighted new mortgage reforms that took effect in December. Cornerstone believes the changes made it easier for buyers to qualify for a mortgage with a down payment of less than 20 per cent.

The insured mortgage cap also increased from $1 million to $1.5 million, and all first-time buyers and those purchasing new builds will be eligible for 30-year amortizations, to help reduce monthly payments.

New listings in the system, meantime, are going up. There were 901 new listings last month, up 25 per cent from January 2024 and a 27 per cent increase compared to the previous 10-year average for January.