New condo sales in Waterloo Region see dramatic drop in 2025

Real estate experts weigh in after pre-construction condo sales dropped 94 per cent this year. CTV’s Alexandra Holyk has more.

As temperatures drop, so too have housing sales in Waterloo Region.

A new report from an Ottawa-based housing think tank revealed only 29 pre-construction condos in Kitchener, Cambridge and Waterloo were purchased between January and September this year – down 94 per cent from pre-sales during the same period from 2021 to 2024.

“We’ve definitely seen a slowdown in the market activity as a whole,” said Shawn Ramautor, a sales representative at Royal LePage Wolle Realty. “Average sale prices are down, inventory is ticking up and depending on the segment of the market that you’re in, you’re seeing that a little bit more prevalently.”

The report, published by Missing Middle Initiative, found that Kitchener, Cambridge and Waterloo averaged about 816 new builds between 2021 and 2024. This year, developers poured the foundation for 1,435 new builds – all of which were in Kitchener or Waterloo.

“So on the pre-construction, specifically condominium side, builders and developers just aren’t building anymore,” Ramautor said.

“A lot of these condominiums or units that were built had investors that bought them and they were going to be rental units,” he continued. “Well now, if our student population is decreasing … there’s just not that demand to fill that piece of the pie, to fill those units.”

While demand is low, Ramtour said apprehension is high, with the ongoing trade war and geopolitical tensions sparking uncertainty in interest rates and employment.

“Somebody isn’t going to buy right now if they don’t know if their job is going to be here tomorrow or if it’s going to be here the next day,” he said. “They’re concerned right now with what we’re seeing, what’s imminent.”

The market slow down means buyers have the upper hand.

“Buyers have choices now and they can be a little bit more picky with what they’re looking for,” said Ramatour. “And they do have a little bit more room in negotiating.”

As for next year, Ramatour said there isn’t a clear forecast for housing costs.

“I definitely think 2026 may present itself with some opportunity,” said Ramatour. “But we are again at the mercy of the global economy and wait to see what happens.”

Ramatour added that the market is cyclical and will eventually rebound. However, with a lack of demand and overall costs on the rise, he said there are several factors that would need to come down before the market can balance itself out.