What’s Happening in the Kitchener-Waterloo Housing Market?
The average residential sale price in the Kitchener-Waterloo housing market decreased by 4.9 per cent across all property types between 2025 and 2026, declining from $778,169 to $739,707. The number of sales also decreased by 5.4 per cent over the same period, from 3,134 to 2,965, and the number of listings declined 9.9 per cent, falling from 7,584 to 6,833.
Looking ahead, average 2026 sale prices and sales activity are both expected to decline by approximately 5 per cent compared with 2025 levels.
The Kitchener-Waterloo Region is currently a buyer’s market, with elevated inventory levels, longer selling periods, and significantly more choice and negotiating power for buyers. Well-priced, well-presented homes continue to sell, while properties priced above current market expectations can remain on the market considerably longer.
Economic uncertainty is the biggest factor delaying first-time buyers. Lower prices combined with a larger selection of homes have improved affordability, but this has not resulted in a proportional increase in market activity. Many buyers continue to lack a sense of urgency due to ongoing uncertainty surrounding the economy and future home values.
According to Faisal Susiwala of Kitchener-Waterloo-based REMAX Twin City Realty, the HST rebate has improved affordability for qualifying buyers, particularly those considering new construction, but it has primarily benefited buyers who were already close to making a purchase. Combined with builder incentives, the rebate is making new construction more competitive and diverting demand away from an already well-supplied resale market.
The rebate is having its greatest impact at entry-level and mid-range price points, including townhomes and smaller detached homes. Buyers are asking more questions about eligibility, available incentives, and the total cost difference between new construction and resale properties.
Buyers remain least willing to compromise on location. However, they are increasingly open to purchasing townhomes or condominiums instead of detached homes. They are also showing greater flexibility when it comes to smaller properties, cosmetic renovations, longer commutes, and locations outside their original search area.
According to Faisal, the foreign buyer ban has had little impact on affordability or new construction development.
Frequently Asked Questions
How have home prices changed in the Kitchener-Waterloo Region?
The average residential sale price in the Kitchener-Waterloo Region decreased by 4.9 per cent between 2025 and 2026, declining from $778,169 to $739,707.
How have sales and listings changed in the Kitchener-Waterloo Region?
The number of sales decreased by 5.4 per cent, from 3,134 to 2,965, while the number of listings decreased by 9.9 per cent, from 7,584 to 6,833.
What is expected for Kitchener-Waterloo home prices in 2026?
Average 2026 sale prices are expected to decline by approximately 5 per cent compared with 2025 levels.
What is expected for home sales in 2026?
Sales activity is also expected to decline by approximately 5 per cent compared with 2025 levels.
Is the Kitchener-Waterloo Region a buyer’s market?
Yes. The Kitchener-Waterloo Region is currently a buyer’s market, with elevated inventory levels, longer selling periods and significantly more choice and negotiating power for buyers.
What types of homes are still selling in the current market?
Well-priced, well-presented homes continue to sell, while properties priced above current market expectations can remain on the market considerably longer.
What is the biggest factor delaying first-time buyers?
Economic uncertainty is the biggest factor delaying first-time buyers. Lower prices and greater selection have improved affordability, but many buyers remain uncertain about the economy and future home values.
How is the HST rebate affecting the Kitchener-Waterloo housing market?
According to Faisal Susiwala of Kitchener-Waterloo-based REMAX Twin City, the HST rebate has improved affordability for qualifying buyers, particularly those considering new construction. However, it has mainly benefited buyers who were already close to purchasing and has helped make new construction more competitive with resale properties.
Where is the HST rebate having the greatest impact?
The rebate is having its greatest impact at entry-level and mid-range price points, including townhomes and smaller detached homes.
What questions are buyers asking about the HST rebate?
Buyers are increasingly asking about eligibility requirements, available incentives and the overall cost difference between new construction and resale properties.
What are buyers least willing to compromise on?
Buyers remain least willing to compromise on location. However, they are more willing to consider townhomes or condominiums, smaller properties, cosmetic renovations, longer commutes and locations outside their original search area.
Has the foreign buyer ban affected affordability or new construction development?
According to Faisal Susiwala, the foreign buyer ban has had little impact on affordability or new construction development.
