New Home Listings Rise and Sales Decline

 

WATERLOO REGION, ON (March 5, 2025) – In February, a total of 363 homes were sold in the Waterloo Region via the Multiple Listing Service® (MLS®) System of the Cornerstone Association of REALTORS® (Cornerstone). This represents a 26.1 per cent decrease compared to the same period last year and a decline of 38.8 per cent compared to the average number of homes sold in the previous ten years for the same month.

“While February’s home sales were affected by concerns over tariffs and their potential impact on employment, the market showed some encouraging signs. We saw a steady increase in new listings while prices remained stable,” notes Christal Moura, spokesperson for the Waterloo Region market. “The month’s significant snowfall created practical challenges for buyers and sellers, affecting property viewings and transactions. However, I am seeing positive indicators in the market, with consistent attendance at open houses, pre-listing appointments, steady mortgage pre-approvals, and buyers on the sidelines carefully watching for the right opportunity to make their move.”

Total residential sales in February included 221 detached homes (down 21.9 per cent from February 2024), and 71 townhouses (down 36.0 per cent). Sales also included 47 condominium units (down 35.6 per cent) and 23 semi-detached homes (down 4.2 per cent).

In February, the average sale price for all residential properties in Waterloo Region was $767,800. This represents a 1.3 per cent increase compared to February 2024 and a 1.8 per cent increase compared to January 2025.

• The average price of a detached home was $900,003. This represents a 1.0 per cent increase from February 2024 and an increase of 2.1 per cent compared to January 2025.
• The average sale price for a townhouse was $613,924. This represents a 2.7 per cent decrease from February 2024 and a decrease of 2.6 per cent compared to January 2025.
• The average sale price for an apartment-style condominium was $437,000. This represents a 5.8 per cent decrease from February 2024 and a decrease of 7.2 per cent compared to January 2025.
• The average sale price for a semi was $670,352. This represents a decrease of 0.5 per cent compared to February 2024 and an increase of 6.6 per cent compared to January 2025.

“As we navigate these shifting dynamics in the Waterloo Region housing market, it’s important to remember that while sales may be down, the increase in inventory reflects growing opportunities for buyers,” said Moura.

There were 858 new listings added to the MLS® System in Waterloo Region last month, an increase of 7.3 per cent compared to February last year and a 0.8 per cent increase compared to the previous ten-year average for February.

The total number of homes available for sale in active status at the end of February was 1,450, an increase of 55.7 per cent compared to February of last year and 68.7 per cent above the previous ten-year average of 860 listings for February.

The total inventory across the market increased by 52.9 percent, resulting in a 2.6-month supply of all property types by the end of February. Condominium apartments had the highest inventory, with 5.9 months’ supply, followed by townhouses with 3.6 months’ supply and detached homes with 1.8 months’ supply. The number of months of inventory represents the time it would take to sell off current inventories at the current sales rate.

The average time to sell a home in February was 24 days, compared to 34 days in the previous month. Likewise, in February 2024, it took 24 days for a home to sell, and the five-year average was 15 days.

Cornerstone emphasizes the importance of consulting a local REALTOR® when considering buying or selling property in the Waterloo Region. Their expertise can provide valuable insights into the current market conditions, enabling individuals to make well-informed decisions aligned with their goals and preferences.

View our HPI tool here to learn more: https://www.cornerstone.inc/stats/

The Benefit of On-Demand Tankless Water Heater?

 Before you fall in love with a home, you should ensure that you qualify for a mortgage so you have the peace of mind of knowing that your financing has been arranged.

Getting pre-approved for a mortgage should be the first step in your home search process. Not only will this help you determine how much money you can spend on a house, but it will also help convince sellers that your offer is serious. In fact, some sellers will not accept an offer unless it comes with a pre-approval letter from a well-known lender.

A pre-approval can tell you how much you will qualify for, hold an interest rate while you shop, and help avoid pitfalls when it is time to buy so do not miss this important step in your home search process.

A pre-approval is not a binding commitment, but rather an indication that the lender is willing to extend a mortgage to an applicant once a suitable property has been found and secured via a real estate contract. It is usually valid for 90 to 120 days. The final decision is generally subject to certain conditions being met before the mortgage is finalized such as the appraisal of the real estate is high enough to protect the lender in the case of default, the property title is clear and the property meets inspection standards, plus many other factors.

Even though you have been pre-approved by a lender, it is best practice to include a condition of financing in the purchase agreement to give you time to gather your documents and the lender time to review and give final approval to your application. Once you have a signed purchase agreement, the lender will require written income verification and proof of down payment, as well as proof the title is clear, the property meets inspection standards, and the appraisal of the property is high enough to protect the lender in case of default.

As soon as you receive pre-approval, you will be in a solid position to make an offer on your preferred house, and motivated sellers will be much more inclined to accept your offer. Your mortgage pre-approval letter can make the entire process go more smoothly. The pre-approval letter can also place your offer ahead of others that are comparable. After all, the process of closing on a home can be long and tedious, especially for a seller who needs to move quickly. Therefore, if the seller has to choose between accepting two similar offers and yours is the only one that comes with a mortgage pre-approval letter, the odds are high that you will be the one who ends up signing on the dotted line.

The Importance of a Mortgage Pre-Approval

 

Before you fall in love with a home, you should ensure that you qualify for a mortgage so you have the peace of mind of knowing that your financing has been arranged.

Getting pre-approved for a mortgage should be the first step in your home search process. Not only will this help you determine how much money you can spend on a house, but it will also help convince sellers that your offer is serious. In fact, some sellers will not accept an offer unless it comes with a pre-approval letter from a well-known lender.

A pre-approval can tell you how much you will qualify for, hold an interest rate while you shop, and help avoid pitfalls when it is time to buy so do not miss this important step in your home search process.

A pre-approval is not a binding commitment, but rather an indication that the lender is willing to extend a mortgage to an applicant once a suitable property has been found and secured via a real estate contract. It is usually valid for 90 to 120 days. The final decision is generally subject to certain conditions being met before the mortgage is finalized such as the appraisal of the real estate is high enough to protect the lender in the case of default, the property title is clear and the property meets inspection standards, plus many other factors.

Even though you have been pre-approved by a lender, it is best practice to include a condition of financing in the purchase agreement to give you time to gather your documents and the lender time to review and give final approval to your application. Once you have a signed purchase agreement, the lender will require written income verification and proof of down payment, as well as proof the title is clear, the property meets inspection standards, and the appraisal of the property is high enough to protect the lender in case of default.

As soon as you receive pre-approval, you will be in a solid position to make an offer on your preferred house, and motivated sellers will be much more inclined to accept your offer. Your mortgage pre-approval letter can make the entire process go more smoothly. The pre-approval letter can also place your offer ahead of others that are comparable. After all, the process of closing on a home can be long and tedious, especially for a seller who needs to move quickly. Therefore, if the seller has to choose between accepting two similar offers and yours is the only one that comes with a mortgage pre-approval letter, the odds are high that you will be the one who ends up signing on the dotted line.

Different Types of Home Ownership

 

The laws covering property ownership may differ from province to province in Canada. In general  (aside from sole ownership) there are five basic ways for two or more individuals to own real estate. Each person involved in ownership in the transaction should obtain his or her own independent legal advice as to the method of ownership and potential liability as an owner.

Joint tenancy
Under this type of ownership, each owner owns equally. Joint tenancy typically means that should a purchaser become deceased, the remaining purchaser(s) on the title will inherit the deceased's interest in the property. Where one of the "joint tenants" dies, the surviving joint tenant(s) usually automatically becomes the owner(s) of the property no matter what a will might state. This is the manner of holding titles most commonly used by spouses.

Tenants-in-common
Under this type of ownership, each owner’s share can be different (e.g. John owns 90% and Jim owns 10%). Tenancy in Common means that should a purchaser become deceased, the deceased person's interest in the real estate will be transferred according to that person's will. If no will exists, then the law of the province will apply.

Condo ownership
Condo ownership has rapidly become a feature of North American cities.  Condos, lofts, and other variations (such as townhouses) are all available.  A condo owner gets title or ownership of the individual unit and has sole responsibility for maintaining that unit, but they also acquire an interest in the condo corporation that owns the common elements of the building or community. Condo owners pay a monthly fee to the condo corporation as their share of those expenses to maintain the common elements. 

Condo ownership can look easy, but the transaction is a little more complicated than a regular house purchase.  For example, there are many documents that must be prepared and registered to ensure that the entire project—not just the one condo that may be being purchased—is legitimate under the provincial condominium laws.

Life interest
A life interest form of ownership entails giving a person the right to live in, occupy or use a piece of property for as long as they live.  When they die, they lose any interest in the property.  This type of ownership of real estate can be useful in a situation, for example, where a man wants to let his second wife use a property until her death, at which time it would go to his children from a first marriage.

The partnership agreement
If more than one person will be shown on the title as owner and, if only one person is providing all (or a substantial portion) of the funds needed for the purchase, you may wish to consider entering into a special partnership agreement to avoid any future misunderstanding with respect to the distribution of proceeds upon a resale of the property. Should you wish such an agreement to be prepared for signature when you sign the final closing documents, please inform your real estate lawyer.

One of the features of such an agreement is to return to each purchaser whatever cash was originally contributed by each purchaser at the time of completing the transaction as well as any additional contributions made to improving the property during the period of ownership. Other features of the agreement deal with the distribution of the balance of proceeds once the property is eventually resold and what happens if one partner wishes to sell and the other partner does not. Each partner should consider obtaining independent legal advice before entering into a partnership agreement.

Tax Deductions!

 Many taxpayers overpay their taxes simply because they fail to claim some of the common deductions and credits they are entitled to. As a homeowner, there are several home tax deductions and credits that you can claim.

Before you submit your next return, check the following list. It represents the most frequently overlooked tax breaks available to typical working Canadians.

First-time home buyer’s tax credit
If you are buying a home for the first time, you can claim a non-refundable tax credit of up to $750. This new non-refundable tax credit is based on a percentage of $5,000. You or your spouse or common-law partner can claim the home buyer’s tax credit.

GST/HST tax rebate (new housing rebate)
If you buy a new home as your principal residence, and if it’s less than $450,000, you may be able to claim the GST/HST new housing rebate too. Ontario and B.C. residents may also claim the provincial portion of the HST if they buy, build or do a major renovation on their principal residence. Other home tax deductions exist for homes that are built by the owner as well as for residential rental properties.

Home Buyer’s Plan
The Home Buyer’s Plan allows you to withdraw up to $25,000 from your registered retirement savings plan (RRSP) to help with the purchase or construction of a home. Certain conditions apply. Submit a request by completing the T1036 tax form that is available.

Medical expenses tax credit
Persons with mobility impairments can claim renovation expenses to make their home more accessible under medical expenses deductions in Canada. The government provides an extensive list of eligible medical expenses as well as medical expenses that you cannot claim. 

Moving expenses
If you move within Canada, your moving expenses might be an allowable tax deductible. You must be employed, and your new location must be at least 40 kilometres closer to your place of work. Starting a business would qualify, as would moving away from home to take your first job. If the deductions are greater than earned income, they can be carried forward for one year to realize the full tax benefit.

Expenses that can be claimed include hiring movers or renting a van to move yourself, breaking a lease, furniture storage, meals and lodging for you and your family while traveling, and legal fees and real estate commissions if you have to sell your home.

Work-from-home expenses
If you are using your house as part of your business — a home office for example — you can claim a deduction for that part of the home that is used to conduct business activities. If you are a homeowner you can claim a portion of your mortgage interest, property taxes, and capital cost allowance. If you are a renter you can claim a portion of your monthly rent. You can include in your deduction a share of the utilities, insurance, or home maintenance allotted to the area of the house set aside for business use. For each of these expenses, you can claim a percentage equal to the percentage of your home that is reserved for business.

You can’t use these items to create a loss that could be deducted against other sources of income, however. Of course, any expenses solely related to the business, such as supplies, travel, and client entertainment, are fully deductible. CRA forms T2124 and T2032 contains a guide entitled “Calculation of Business-Use-of-Home Expenses” that will help you calculate your allowable claim.

Rental income
If you rent a property you own or that you have use of, use the T776 tax form to report rental income and claim allowable expenses such as advertising, insurance, and interest on the money you borrow to buy or improve the property.

Childcare tax credit
In most cases, childcare expenses for an eligible child must be claimed by the parent with the lower net income for tax purposes.  If parents are separated and share custody, each parent may usually claim a portion of the childcare costs.  Where a medical doctor certifies in writing that the lower-income spouse is incapable of caring for the child due to physical or mental infirmity, the costs may be claimed by the higher-income spouse.

Eligible child care expenses include daycare centres and day nursery schools, some individuals providing child care services, day camps and day sports schools, educational institutions such as private schools (the portion of tuition costs relating to child care services), boarding schools, and overnight sports schools and camps.

Provincial credits
Manitoba homeowners benefit from two other home tax credits: the Education Property tax credit and the School Tax Credit for homeowners. In Ontario, homeowners can apply for the Ontario property tax credit and the Senior Homeowner’s Property tax credit.  For more information, please consult the CRA website http://www.cra-arc.gc.ca