Market Watch May 2026
Happy summer! Here is what’s happening in Waterloo Region real estate.
WATERLOO REGION REMAINS BALANCED
The Waterloo Region housing market remained balanced in May 2026, with both sales activity and prices continuing to soften compared to a year ago.
A total of 625 residential properties were sold, down 8.0% from May 2025, while new listings declined 13.3% to 1,442 homes.
The median sale price across all residential property types was $690,000, a decrease of 6.8% year-over-year, while the average sale price fell 5.7% to $745,909.
Single-family homes remained the strongest segment, with sales down only 3.7% and year-to-date sales slightly ahead of last year, while townhouse, semi-detached, and condominium sales declined 15.3%.
Inventory levels remained healthy, with 2,008 active listings and approximately four months of supply, giving buyers more choice and negotiating power.
Overall, improved affordability and increased selection are benefiting buyers, while sellers are finding success through realistic pricing and strong marketing strategies.
The sales to new listing ratio for March is 43.11%. Balanced is considered by the BOC to be between 40% and 60%.
Average days on market is 24 days. It’s important to note this number reflects only homes that actually sold and not the homes that didn’t or are still on the market.
Average sale to list price ratio is 99.3%.
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By the way, your referrals are the best compliment you can give. All sales through your referrals to me will see a portion of my commission donated to The Humane Society of Kitchener Waterloo Stratford Perth.
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Lance
The Greater Toronto Area housing market showed signs of strengthening in May 2026 as sales increased while new listings declined, leading to tighter market conditions.
GTA REALTORS® reported 6,583 home sales, up 6.3% compared to May 2025. At the same time, new listings fell 18.9% year-over-year to 17,698, helping reduce the amount of available inventory.
The average selling price was $1,069,700, down 4.6% from a year ago, while the MLS® Home Price Index benchmark declined 6.7% year-over-year, continuing to provide buyers with improved affordability compared to recent years.
However, with inventory being absorbed and sales activity improving, market conditions are becoming more competitive and price declines appear to be moderating.
On a seasonally adjusted basis, sales increased 10% month-over-month from April, while new listings declined 2.1%, further indicating a tightening market.
TRREB expects sales activity to continue improving through the second half of 2026, particularly if economic uncertainty eases and borrowing conditions remain favourable.
Key Numbers (May 2026):
Sales: 6,583 (+6.3% YoY)
New Listings: 17,698 (-18.9% YoY)
Active Listings: 26,927 (-13.3% YoY)
Average Price: $1,069,700 (-4.6% YoY)
Average Days on Market: 27 days
Months of Inventory: 4.8 months
Bottom Line: The GTA market is gradually moving toward balance. Buyers still have choice and negotiating power, but improving sales and declining inventory suggest that the market is becoming more competitive and could see price stabilization as 2026 progresses
ALL STATS FROM TORONTO REGIONAL REAL ESTATE BOARD
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Looking to make a move? Have questions? I help people buy and sell homes with confidence so they can move onto the next chapter. Contact me now.
Sell and move forward with confidence!
Lance Nielsen
519-748-7057
Lance@LanceNielsen.com
LANCE IS A MEMBER OF BOTH THE CORNERSTONE ASSOCIATION OF REALTORS & THE TORONTO REGIONAL REAL ESTATE BOARD
