Below, you will find a Tri-Cities Market Update For January 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!

Are you signed up for our newsletter yet? In a shifting market, it’s essential to stay informed! Sign up for our newsletter here and be the first to know about new listings, market updates, real estate news, and more! Sign up here:

Tri-Cities Market Update For January 2025

The Numbers

December is traditionally the slowest month for real estate, and this year followed suit, with both sales and listings experiencing a typical seasonal dip compared to January. However, there’s positive news: sales in the Tri-City area increased by 9% compared to last December, setting the stage for a strong start to 2025.

On the pricing front, the average sale price rose 2% year over year. Detached homes saw a 5% increase, and townhouses increased by 2%. However, condos, which have faced challenges in recent years, experienced a 3% decline. Oversupply and high interest rates, coupled with condo fees, continue to weigh on the condo segment.

Interest Rates

The Bank of Canada’s rate announcement is January 29. Most analysts anticipate a 25-basis-point cut, bringing the rate to 3%. However, others predict a pause, citing December’s stronger-than-expected job growth. While variable rates are projected to decline throughout 2025, fixed rates may not follow. Fixed rates are tied to bond yields, which rose in December, leading some experts to predict that fixed rates will remain flat or even increase slightly.

Predictions

Great opportunities may be on the horizon for first-time buyers, especially those considering homes with rental units to help offset costs. Kitchener-Waterloo shows signs of softening in the rental market, with declining rents and rising occupancy rates, which may lead to more investors putting their homes on the market.

2025 is likely to bring a balanced and stable market. Steady price growth and a moderate sales pace make this environment ideal for those planning to upgrade. Selling your current home first is often the less stressful option, as today’s healthy inventory offers plenty of opportunities to find your next home. This combination of balance and opportunity makes now an excellent time to act in the market. Listing early to avoid the influx of inventory that hits the market in the spring could be advantageous.

I’m Brad Wylde, and I want to wish you and your family a joyful holiday season and all the best for 2025. If real estate is on your mind, even during the holidays, don’t hesitate to reach out. We’re always here to help!