Looking ahead to Waterloo Region's 2025 housing market

Experts say the housing market is due for a comeback in 2025.

There wasn’t much movement after June 2024, once the Bank of Canada finally implemented interest rate cuts. By fall, however, the market began showing signs of improvement.

“It's a little bit more tame right now, but I don't expect it to remain this tame,” said Faisal Susiwala, who has been a realtor in Waterloo Region for over three decades. “As the rates go down, prices will start coming up, buyers will start coming into the market, sellers’ expectations will start increasing and we'll see more and more bidding wars.”

According to the Canadian Real Estate Association, the number of homes sold in November jumped 26 per cent year over year, thanks in part to lower policy rates.

“December 11th [there was] another half per cent cut and a quarter per cent cut is expected in January. This should lead to some increase in values as the rates start to go down,” explained Susiwala. “In addition to that, as of mid-December, CMHC lifted their ceiling on insured mortgages to $1.5 million.”

That’s good for Waterloo Region, he said, especially for anyone who capped out at $1 million.

Also, there’s pent up demand in the region, as many potential buyers spent months sitting on the sidelines.

Meaning – buyers better move quickly in the new year.

“The earlier buyers in 2025 will come out way ahead than those who wait until spring, summer or fall,” Susiwala said.

He predicts the average price point for properties in Waterloo Region will go up by at least 10 per cent this time.

Briar McCann and her husband just sold their first home after living in it for seven years.

“We have four kids and we just kind of outgrew the house that we're in currently,” she said.

It wasn’t on the market for long. The listing went live on Wednesday and sold by the weekend. McCann said that’s a relief as the family has already bought another home.

“The market's a little bit unpredictable now, like it was the last couple of years. So we were a bit surprised how many people were interested.”

The couple said they sold their home for about $100,000 over the asking price.