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Housing Price Report: Kitchener-Waterloo Market Report – Q3 2025

Today, Royal LePage® released its Q3 2025 House Price Survey. Below are highlights from the report for the Kitchener-Waterloo, Ontario, housing market.

  • In Kitchener-Waterloo, the aggregate[1] home price decreased 5.4% year over year to $709,800 in Q3 2025, and decreased 1.1% from Q2 2025.
  • The median price of a single-family detached home decreased 3.7% year over year to $814,200.
  • The median price of a condominium decreased 7.1% year over year to $391,900.

October 15, 2025 – “Resale inventory across the region continues to rise, while new development has largely stalled aside from a few purpose-built rental projects. Over the summer, we saw significant price declines. However, signs of stabilization emerged towards the end of the quarter,” said Mike Milovick, broker, Royal LePage Wolle Realty. “Detached homes priced under $600,000 remain in high demand and can still attract competing offers. Meanwhile, the condo market is frozen, plagued by high inventory and very low absorption. The reduction of foreign students has had a massive impact on the rental market. Investors have been hit especially hard, and there’s a lot of inventory languishing across the region.”

Milovick noted that interest rate cuts have had little effect on demand so far in the region, as many buyers remain cautious and are waiting to see how broader economic factors play out. However, buyers who intend to obtain a variable rate mortgage will automatically benefit from any future decreases in borrowing costs, which reduces the incentive to delay entering the market today, he notes.

Nationally, the aggregate price of a home in Canada recorded virtually no change in the third quarter of 2025, increasing just 0.1 per cent year over year to $816,500. However, on a quarter-over-quarter basis, the national aggregate home price posted a decline of 1.2 per cent, driven by depreciation in many major markets across the country over the summer.

“Canada’s housing market is shifting toward balance, as easing prices, rising listings and renewed rate cuts improve affordability across most regions,” said Phil Soper, president and CEO, Royal LePage. “For the first time in years, buyers – especially in previously supply-strapped markets – have real choice and negotiating power. With confidence returning and further rate reductions expected into early 2026, we anticipate noticeably stronger activity by the spring.”

Following a slower-than-usual start to the year, home sales picked up late in the spring and have consistently increased over the last five months, according to the Canadian Real Estate Association (CREA).[2]

“Affordability is improving and the economic backdrop remains remarkably stable, yet consumer confidence is lagging,” said Soper. “Many buyers remain hesitant – some worried about broader economic uncertainty, others waiting to see if prices dip a little further before stepping in.”

The Royal LePage National House Price Composite is compiled from proprietary property data nationally and regionally in 64 of the nation’s largest real estate markets. When broken out by housing type, the national median price of a single-family detached home increased 1.2 per cent year over year to $860,600, while the median price of a condominium decreased 1.6 per cent to $580,700. On a quarter-over-quarter basis, the median price of a single-family detached home and a condominium declined 1.1 and 1.9 per cent, respectively. Price data, which includes both resale and new build, is provided by RPS Real Property Solutions, a leading Canadian real estate valuation company.

Compared to the peak of pandemic pricing in the spring of 2022, national home prices have come down by approximately five per cent, driven by depreciation in the urban centres of Toronto and Vancouver, where prices are currently sitting more than 12 per cent below the peak. Meanwhile, home prices have continued to appreciate in Quebec, the Prairies and Atlantic Canada.

“Buyer sentiment is being influenced by a complex mix of economic and psychological factors,” said Soper. “Despite materially improved affordability in major cities, many Canadians – particularly younger ones – remain cautious amid high post-pandemic living costs, perceived job uncertainty, and general unease about our economic prospects. It’s understandable that some are waiting before making such a significant purchase.”

Royal LePage is forecasting that the aggregate price of a home in Canada will increase 1.0 per cent in the fourth quarter of 2025, compared to the same quarter last year. The previous forecast has been revised down to reflect price depreciation across Ontario and British Columbia, and slowing growth in other major markets. 

Royal LePage House Price Survey Chart: rlp.ca/house-prices-Q3-2025
Royal LePage Forecast Chart: rlp.ca/market-forecast-Q3-2025  

[1] Aggregate prices are calculated using a weighted average of the median values of all housing types collected. Data is provided by RPS Real Property Solutions and includes both resale and new build.

[2] Canadian Home Sales Post Best August in Four Years, September 15, 2025