Below, you will find a Tri-Cities Market Update For February 2025, which will provide information on the local Cambridge, Kitchener and Waterloo real estate market and recent sales activity in your area. Don’t hesitate to contact us if you have any questions or are ready to proceed with the next step!

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Tri-Cities Market Update For February 2025

https://youtube.com/watch?v=NYtwkKzj1YM%3Ffeature%3Doembed

The Numbers

The groundhog said an early spring, so let’s hope that will apply to the real estate market in the Tri-cities (Kitchener, Waterloo, and Cambridge)

January was a rollercoaster for the Tri-city real estate market, shaped by major economic and political events. On one hand, we saw the sixth consecutive interest rate cut, bringing the overnight rate down to 3%—great news for variable-rate borrowers. On the other hand, Trump’s 25% tariff threat and Trudeau’s promise to retaliate sent shockwaves through key industries. Though the tariff has now been paused for 30 days, the uncertainty it created in January had a clear impact on the market.

Let’s look at the numbers.

Across the Tri-Cities, the average sale price dipped just under 1% to $738,000. Detached homes saw the biggest hit, dropping 4% to $875,000, while condos bucked the trend, climbing 5% to $470,000. With higher inventory and 16% fewer sales, it was a buyer’s market, giving those looking to purchase more options and negotiating power.

On a city-by-city level:

Cambridge led the way, with prices rising 1.6%.
Kitchener saw modest growth at 0.7%.
Waterloo took the biggest hit, down 5.7%. This was likely due to the foreign student restrictions, which softened demand for student rental properties. Normally, January is a strong month for this segment, but that wasn’t the case this year.

What’s Next?

Looking ahead, the market is expected to stabilize with moderate price growth—a shift toward a more normal, sustainable pace. With lower rates and new mortgage rules that make it easier for first-time buyers to qualify, now is an opportunity to get into the market before prices start climbing.

For sellers, this is not a market where anything will sell. Pricing right, presenting well, and having strong marketing will be critical to getting top dollar.

If you’re wondering what to do in this market, I’m Brad Wylde with GoWylde Real Estate, and we’re passionate about helping people build wealth through real estate. Let’s navigate this together!