Market Watch May 2025
Wishing you a happy summer!
WATERLOO REGION
The Waterloo Region housing market experienced a notable slowdown in May 2025, with 675 homes sold through MLS®, a 9.3% decrease from the previous year and 26.2% below the ten-year average for May.
Despite declining home prices, with the overall average sale price dropping 3.6% to $789,154, market uncertainty driven by tariffs and job security concerns is keeping potential buyers hesitant to enter the market.
All property types saw sales declines, with condominiums hit hardest at a 20.2% drop, while inventory increased with 1,663 new listings added (up 1.4% year-over-year).
While the current market offers buyers more breathing room compared to the frenzied conditions of recent years, consumer confidence remains insufficient to drive stronger sales, though the region’s diverse economy, tech sector, and educational institutions continue to make it an attractive long-term investment destination.
The sales to new listing ratio is at 40% indicating we are entering a buyers market. Balanced is considered by the BOC to be between 40% and 60%.
Average days on market is at 24.
Looking to make a move? Let’s talk about how these changing conditions might benefit your real estate goals. Sell and move forward with confidence!
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Lance
📊 GTA HOUSING MARKET UPDATE: MAY 2025
The Greater Toronto Area housing market showed improved affordability in May 2025, with home sales declining 13.3% to 6,244 units compared to the previous year, while new listings surged 14% to 21,819, giving buyers increased inventory and negotiating power.
The average selling price dropped 4% year-over-year to $1,120,879, and the MLS® Home Price Index fell 4.5%, making home ownership more accessible alongside lower borrowing costs.
However, market experts attribute the sales decline to economic uncertainty, particularly concerns about trade stability with the United States, rather than affordability issues, suggesting that once confidence returns and interest rates continue to fall, sales activity should rebound.
TRREB officials emphasize that while market conditions favor buyers with greater choice and improved affordability, the full potential of the market remains constrained by broader economic concerns, and they’re calling for government action to further support housing affordability through reduced taxes and fees, streamlined construction processes, and continued interest rate cuts.
If you are considering buying or selling, contact me anytime to answer your questions, big or small. Call now!
Problem solver in the real estate market.
Sell and move forward with confidence!
Lance Nielsen
519-748-7057
Lance@LanceNielsen.com
