Waterloo Region home sellers urged to be patient as market slowdown persists

The pandemic-era real estate frenzy in Waterloo Region is officially over as home prices continue to drop.

The pandemic-era real estate frenzy in Waterloo Region is officially over as home prices continue to drop. The Royal LePage Q2 2026 House Price Survey found the aggregate price of a home in the region dipped 2.8 per cent year-over-year to $697,400. On a quarter-over-quarter basis, prices remained essentially flat, going down 0.2 per cent from the first quarter of the year.

Local real estate experts said the shift shows a big change from the market’s peak. “This isn’t the pandemic where things sold in seven days on offer days,” said Mike Milovick, a broker with Royal LePage Wolle Realty. “On my end, I’m seeing 40-plus days easily.”

Milovick noted that pandemic-era pricing is also long gone, with the average price of a house dropping by approximately $300,000 since that time. The condo sector has taken the hardest hit. The median price of a condo plummeted eight per cent year-over-year to $366,200.

Milovick admitted that it is a good to time for first-time buyers and move-up buyers with built up equity, but said the condos available aren’t for every buyer. “The challenge is that with a lot of these condos, they’re geared more towards renters as opposed to families,” Milovick said. He said real estate investors are on the sidelines in many cases these days as well.

Meanwhile, single-family detached homes have shown more resilience. The median price for a detached home decreased by 2.3 per cent year-over-year to $803,000, thanks to steady demand. Milovick said the region’s diverse economic landscape that includes universities, insurance, manufacturing, and technology firms, has helped shield the region from dramatic inventory surges and distressed sales.

Milovick assumes a turnaround would first need a clear economic push. “With our unemployment rate being much higher than the average, we really need that catalyst, whether it’s reduced interest rates, that helps with affordability or certainty from a tariff perspective,” he said. “We really need something to happen.”

For sellers, he acknowledged that it is tough for many of his clients, but he said they must be patient. Looking ahead, the sluggish trend is expected to continue. Real estate experts believe the quiet market will continue through the summer, stretching through the remainder of 2026 and into next year before the market is ready to rebound.

Last month, the Cornerstone Association of Realtors said home sales dipped 2.9 per cent last month compared to the previous year, marking the slowest June on record.