London Housing Market Outlook 2025
Table of contents
London Market Report Summary
- The average selling price of a home in London decreased by 8% year-over-year to $562,300 in September 2025.
- The average selling price of a single-family home in London decreased by 7.3% year-over-year to $611,400 in September 2025.
- The average selling price of a townhouse/multiplex in London decreased by 5.8% year-over-year to $467,300 in September 2025.
- The average selling price of a condo in London decreased by 9.8% year-over-year to $357,000 in September 2025.
- The average rent in London decreased by 7% year-over-year to $1,942 for September 2025.
- October 17, 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 $562,300 for the month of September 2025, that’s decreased by 1.8% compared to the previous month. On a year-over-year basis, London home prices have decreased 8% over the last 12 months.
Single-family Home Prices
The average selling price of a single-family home in London was $611,400 for the month of September 2025, that’s decreased by 2.2% compared to the previous month. On a year-over-year basis, single-family home prices in London have decreased by 7.3% over the last 12 months.
Townhouse and Multiplex Prices
The average selling price of a townhouse in London was $467,300 for the month of September 2025, that’s unchanged by 0% compared to the previous month. On a year-over-year basis, the price of a townhouse in London has decreased by 5.8% over the last 12 months.
Condo Prices
The average selling price of a condo in London was $357,000 for the month of September 2025, that’s decreased by 2.3% compared to the previous month. On a year-over-year basis, the price of a condo in London has decreased 9.8% 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 September 2025 was $562,300, and it decreased of 8% compared to a year ago.
LSTAR also reported a sales-to-new-listings ratio (SNLR) of 31%, indicating a Buyers in London for September 2025.
London’s Housing Inventory Levels Reached a New Peak
The London and St. Thomas Association of Realtors (LSTAR) reported that housing inventory reached a new high in September, with listings continuing to rise faster than home sales. A total of 1,701 new listings were recorded through London’s MLS System, up 13.7% compared to September 2024. Meanwhile, sales declined by 6% to 534 transactions, a level consistent with the region’s 4-year average.
Market Conditions Reflect a Shift Toward a Buyer’s Market
LSTAR Chair Dale Marsh stated, “When the sales-to-new listings ratio falls below 45%, it’s consistent with the conditions of a buyers’ market.” September’s ratio eased to 31.4%, down from 45.7% in August. Months of inventory rose to 6, up from 5 in August, reinforcing the market’s transition toward buyer-friendly conditions.
Marsh added that “the recent interest rate cut by the Bank of Canada, the first one since March, may influence some buyers who have been waiting on the sidelines.”
Home Prices Declined Slightly as Supply Continued to Build in London
The average home price in the London region fell to $622,805 in September, a decrease of 2.7% compared to the same month last year and down from $651,329 in August. The MLS Home Price Index (HPI) composite benchmark price stood at $562,300, down 1.8% month over month and 3.2% lower than in June.
Benchmark Prices by Property Type in London
- Single-family homes: $611,400, decreased by 2.2% compared to August and 3.7% compared to June.
- One-storey homes: $548,900, decreased by 3.3% compared to August and 5.1% compared to June.
- Two-storey homes: $662,600, decreased by 1.3% compared to August and 2.7% compared to June.
- Townhouses: $467,300, unchanged from August but down 2.1% compared to June.
- Apartments: $357,000, a decrease of 2.3% compared to August and 2.0% compared to June.
Regional Home Prices Across London and Surrounding Areas
- Central Elgin: benchmark $609,300, average $723,723
- London East: benchmark $433,400, average $503,296
- London North: benchmark $642,200, average $685,943
- London South: benchmark $561,100, average $634,874
- Middlesex Centre: benchmark $782,300, average $937,538
- St. Thomas: benchmark $527,400, average $558,707
- Strathroy–Caradoc: benchmark $777,000, average $600,984
London’s Market in the National Context
According to CREA’s national HPI comparison for September 2025, London–St. Thomas’ benchmark price of $562,300 places it below nearby urban markets such as Kitchener–Waterloo ($673,100), Hamilton–Burlington ($753,300), and Toronto ($960,300). However, it remains above other mid-sized markets like Windsor–Essex ($568,100) and Winnipeg ($381,500).
London Real Estate Outlook for Late 2025
Market conditions are expected to remain tilted toward buyers through the final quarter of the year as inventory continues to expand. Home price softness may persist in the near term, though stable demand and lower borrowing costs from the Bank of Canada’s recent rate cut could help renew buyer confidence heading into 2026.
London’s balanced fundamentals and strong job base position it for a steady adjustment phase, supported by the BoC’s ongoing commitment to maintaining mortgage affordability nationwide.
Month-over-Month Market Expectations for London
Transactions – Number of Sales
The number of sales in London was 534 during September 2025, that’s decreased by 13.3% compared to the previous month. On a year-over-year basis, sales in London have decreased by 5% over the last 12 months.
New Listings
The number of new listings in London was 1,701 during September 2025, that’s increased by 26.3% compared to the previous month. On a year-over-year basis, new listings in London have increased by 8.4% over the last 12 months.
Real Estate Market
The sales to new listings ratio (SNLR) in London was 31% during September 2025, indicating a Buyers. On a monthly basis, that’s decreased by 31.4% compared to the previous month. London’s yearly sales to new listings ratio has decreased by 12.4% 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 $1,942 for the month of September 2025, which decreased by 7% on a year-over-year basis.
The average rent for a bachelor apartment in London was $0 for the month of September 2025, which 0 by 0% on a year-over-year basis.
The average rent for a 1-bedroom apartment in London was $1,714 for the month of September 2025, which decreased by 5.2% on a year-over-year basis.
The average rent for a 2-bedroom apartment in London was $2,102 for the month of September 2025, which decreased by 5.8% on a year-over-year basis.
The average rent for a 3-bedroom apartment in London was $1,714 for the month of September 2025, which decreased by 5.8% on a year-over-year basis.
How Does Renting Compare with Homeownership in London?
Each $100,000 in mortgage balance costs an average of $520.07 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 2.50%, and nesto’s prime rate is set to 4.70%.
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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