London Housing Market Outlook 2025
Table of contents
London Market Report Summary
- The average selling price of a home in London decreased by 6% year-over-year to $580,700 in June 2025.
- The average selling price of a single-family home in London decreased by 4.5% year-over-year to $634,900 in June 2025.
- The average selling price of a townhouse/multiplex in London decreased by 7.7% year-over-year to $477,200 in June 2025.
- The average selling price of a condo in London decreased by 6.3% year-over-year to $364,100 in June 2025.
- The average rent in London decreased by 1% year-over-year to $1,981 for June 2025.
- July 21, 2025: Today’s lowest mortgage rate in London is
for a 5-year fixed.
Composite Home Prices
The average selling price of a home in London was $580,700 for the month of June 2025, that’s decreased by 2.2% compared to the previous month. On a year-over-year basis, London home prices have decreased 6% over the last 12 months.
Single-family Home Prices
The average selling price of a single-family home in London was $634,900 for the month of June 2025, that’s decreased by 2.5% compared to the previous month. On a year-over-year basis, single-family home prices in London have decreased by 4.5% over the last 12 months.
Townhouse and Multiplex Prices
The average selling price of a townhouse in London was $477,200 for the month of June 2025, that’s decreased by 2.3% compared to the previous month. On a year-over-year basis, the price of a townhouse in London has decreased by 7.7% over the last 12 months.
Condo Prices
The average selling price of a condo in London was $364,100 for the month of June 2025, that’s decreased by 1.5% compared to the previous month. On a year-over-year basis, the price of a condo in London has decreased 6.3% over the last 12 months.
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London Housing Market Summary
Data from the London and St. Thomas Association of Realtors (LSTAR) indicates that the average price of resale residential homes sold across London in June 2025 was $580,700, and it decreased of 6% compared to a year ago.
LSTAR also reported a sales-to-new-listings ratio (SNLR) of 41%, indicating a Balanced in London for June 2025.
London Housing Market Holds Steady as Inventory and Listings Build
According to the London and St. Thomas Association of Realtors (LSTAR), London’s housing market stayed on a stable path in June, with 745 homes sold. While the average sale price dipped 4.2% from last year to $650,501, months of inventory held firm at 4.5, unchanged from May, pointing to steady housing supply across the region.
- Home sales: 745 units (steady month over month)
- New listings: 1,814 properties (+10.5% YoY)
- Sales-to-new listings ratio: 41.1% (indicative of a balanced market)
- Average price: $650,501 (down 4.2% YoY)
- MLS HPI composite benchmark: $580,700 (↓2.2% MoM)
- Inventory: 4.5 months (unchanged from May)
LSTAR Chair Dale Marsh pointed to the rise in listings and steady months of inventory as signs that the market is no longer contracting. London’s affordability edge remains a draw compared to larger Ontario cities. However, market softness continued in June, with benchmark prices declining across all housing types: one-storey homes fell 4%, townhomes dropped 2.3%, and apartments declined 1.5% month-over-month.
Still, when benchmarked against other urban centres across Canada, the London area remains competitively priced. The local benchmark of $580,700 compares favourably to nearly all major Ontario markets and even undercuts cities like Calgary and Montreal.
Here’s What London’s Stability Means for Your Mortgage Strategy
London’s housing market offers a rare pocket of price stability in today’s unpredictable rate environment. Homebuyers may find more room to negotiate this summer, particularly as listings increase and sellers start to adjust their expectations. With home prices edging down and supply growing, affordability is gradually improving, particularly in the apartment and one-storey segments.
Renewers coming off low pandemic-era rates may face payment increases, but could benefit from relatively flat home values. While the broader market has softened, stable inventory levels suggest little risk of significant price declines, offering a buffer for those refinancing or considering a switch/transfer.
Refinancers, especially those who access their home equity for renovations or investments, should be cautious. Falling benchmark values across all property types may affect appraisals and reduce the available equity. Townhome and apartment owners, in particular, should review comparables closely before initiating a refinance.
From a monetary policy perspective, the Bank of Canada is likely to see London’s stable-but-soft market as a sign that higher interest rates are still working their way through Ontario’s mid-sized markets. The Bank may interpret this as support for gradual easing, especially if national inflation and wage data continue to cool. London’s resilience, along with growing inventory and tame price shifts, will factor into their cautious approach to future rate cuts.
Month-over-Month Market Expectations for London
Transactions – Number of Sales
The number of sales in London was 745 during June 2025, that’s increased by 3.2% compared to the previous month. On a year-over-year basis, sales in London have increased by 9.9% over the last 12 months.
New Listings
The number of new listings in London was 1,814 during June 2025, that’s decreased by 9.3% compared to the previous month. On a year-over-year basis, new listings in London have increased by 20.1% over the last 12 months.
Real Estate Market
The sales to new listings ratio (SNLR) in London was 41% during June 2025, indicating a Balanced. On a monthly basis, that’s increased by 13.7% compared to the previous month. London’s yearly sales to new listings ratio has decreased by 8.5% over the last 12 months.
The sales to new listings ratio (SNLR) measures the number of home sales compared to new listings. An SNLR under 40% suggests a buyer’s market in which buyers have the upper hand and more negotiating power. An SNLR between 40% and 60% is a balanced market, while an SNLR of over 60% is considered a seller’s market.
Annual Changes to Composite Home Prices in London
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London Market Rents Summary
The average rent in London was $1,981 for the month of June 2025, which decreased by 1% on a year-over-year basis.
The average rent for a bachelor apartment in London was $0 for the month of June 2025, which 0 by 0% on a year-over-year basis.
The average rent for a 1-bedroom apartment in London was $1,755 for the month of June 2025, which decreased by 1% on a year-over-year basis.
The average rent for a 2-bedroom apartment in London was $2,122 for the month of June 2025, which decreased by 2% on a year-over-year basis.
The average rent for a 3-bedroom apartment in London was $1,755 for the month of June 2025, which decreased by 2% on a year-over-year basis.
How Does Renting Compare with Homeownership in London?
Each $100,000 in mortgage balance costs an average of $522.77 per month on nesto’s lowest fixed 5-year rate at
Rates used for calculation are those offered on insured purchases with less than a 20% downpayment on a 25-year amortization. Canada’s policy rate is 2.75%, and nesto’s prime rate is set to 4.95%.
Rental Price Changes by City
Rental Price Changes by Province
Rental Price Growth by Housing Type
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Frequently Asked Questions (FAQ) on London Housing Market Outlook for 2025
Will home prices in London rise in 2025?
London’s home prices are expected to stabilize with slight increases in 2025. The city’s affordability and proximity to the Greater Toronto Area (GTA) make it attractive for buyers seeking better value.
Is London a good city to buy a home in 2025?
London remains a top choice for buyers priced out of larger cities like Toronto. It offers substantial investment opportunities, affordable housing, growing infrastructure, and a demand for suburban living.
Will mortgage rates improve affordability in London?
Falling mortgage rates in 2025 will increase affordability, attracting first-time homebuyers (FTHB) and investors to London’s housing market.
How affordable will London homes be in 2025?
London’s housing prices will remain significantly more affordable than those of cities like Toronto. Options for single-family homes, condos, and townhouses will meet various budgets.
What trends will drive London’s housing market?
Affordability, increasing demand from GTA buyers, and population growth will drive London’s housing market into 2025.
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