2025 Year in Review: A Look Back on What I Thought Would Happen and What Actually Did
Dec. 30, 25 | Market Updates
Reflecting back on the year with gratitude and insights as we prepare for what’s next in 2026.
As we close out 2025, it’s a great time to reflect on the trends we anticipated at the beginning of the year, look at how the Cambridge housing market actually performed, and explore what lessons we can carry forward into 2026.
Recap: What We Expected for 2025
In my January 2025 blog on anticipated trends, I outlined several major forces likely to shape the upcoming year:
1. Economic and Policy Influences
I talked about political shifts, mortgage rate watch points, and broader economic headlines that were expected to influence buyer sentiment and market stability.
2. Buyer Opportunities and Decision-Making
I also projected that 2025 would bring renewed opportunity for buyers as borrowing costs softened and affordability improved, along with thoughtful decision-making from both first-time buyers and downsizers.
The Reality: What I Got Right
1. Stabilized Prices and Balanced Conditions
Throughout 2025, home prices eased from peak levels rather than experiencing dramatic swings. The Waterloo-Region market, including Cambridge, saw prices generally decrease modestly year-over-year, signaling moderation and balance in the market rather than volatility.
2. More Choices for Buyers
Inventory levels were elevated compared to previous years, creating a more buyer-friendly environment where buyers had a wider selection and more negotiating power than in the hyper-competitive markets of 2021–2023.
3. Balanced Days on Market and Sales Pace
Homes spent slightly more time on market than in the record-fast environments of the past, which aligned with the anticipation of a more deliberate pace in buyer decision-making.
What I Didn’t Fully Anticipate
1. Broader Price Softening
While we expected moderation, price adjustments across the region were stronger than many anticipated; in Cambridge, average prices declined year-over-year, and sales volume softened, reflecting cautious buyer behavior in some segments.
2. Varied Performance by Neighbourhood and Property Type
Certain areas within Cambridge, like North Galt and West Galt, showed stronger micro-trends compared to others, pointing to nuanced local dynamics that broader forecasts sometimes miss.
3. Market Calm Over Rapid Rebound
Housing market forecasts at the start of the year anticipated a smoother rebound in activity. However, in reality the year reflected a steady and balanced market rather than a surge, reminding us how local conditions and economic sentiment can temper broad projections.
What This Means for Buyers and Sellers
For Buyers:
2025 affirmed that a balanced market brings opportunity: more inventory, thoughtful negotiation, and room to find the right home without unnecessary pressure.
For Sellers:
Pricing and preparation remained paramount. Homes that were priced “right” and strategically positioned continued to perform well; even in a moderating market.
Looking Ahead to 2026: What to Watch For
As we turn our focus to 2026, there are still several reasons to be thoughtful and optimistic:
Affordability and Stability
With interest rates stabilizing and borrowing costs more predictable, 2026 may offer a market where planning matters more than timing.
Demand for Detached and Family-Oriented Homes
Single-detached homes and family-friendly neighbourhoods are expected to remain in demand as buyers continue to prioritize space and lifestyle.
Balanced Conditions Continue
The market is projected to remain balanced, with neither extreme seller pressure nor buyer domination. This is an ideal environment for clients focused on long-term lifestyle decisions.
Closing Thoughts
2025 didn’t bring a dramatic boom, but it also didn’t bring instability. Instead, it offered clarity, balance, and opportunity. That’s the kind of market where thoughtful planning and professional guidance make the difference.
I’m looking forward to sharing more about what to expect in 2026 so stay tuned for the full forecast.
If you have questions about how these trends impact your home goals, I’d be delighted to connect.
