London Housing Market Outlook 2025
Table of contents
London Market Report Summary
- The average selling price of a home in London decreased by 8.2% year-over-year to $572,400 in August 2025.
- The average selling price of a single-family home in London decreased by 6.6% year-over-year to $624,900 in August 2025.
- The average selling price of a townhouse/multiplex in London decreased by 8.3% year-over-year to $467,400 in August 2025.
- The average selling price of a condo in London decreased by 14.5% year-over-year to $365,400 in August 2025.
- The average rent in London decreased by 4% year-over-year to $1,976 for August 2025.
- October 6, 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 $572,400 for the month of August 2025, that’s decreased by 1.1% compared to the previous month. On a year-over-year basis, London home prices have decreased 8.2% over the last 12 months.
Single-family Home Prices
The average selling price of a single-family home in London was $624,900 for the month of August 2025, that’s decreased by 1.2% compared to the previous month. On a year-over-year basis, single-family home prices in London have decreased by 6.6% over the last 12 months.
Townhouse and Multiplex Prices
The average selling price of a townhouse in London was $467,400 for the month of August 2025, that’s decreased by 1.2% compared to the previous month. On a year-over-year basis, the price of a townhouse in London has decreased by 8.3% over the last 12 months.
Condo Prices
The average selling price of a condo in London was $365,400 for the month of August 2025, that’s decreased by 0.2% compared to the previous month. On a year-over-year basis, the price of a condo in London has decreased 14.5% 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 August 2025 was $572,400, and it decreased of 8.2% compared to a year ago.
LSTAR also reported a sales-to-new-listings ratio (SNLR) of 46%, indicating a Balanced in London for August 2025.
London Home Sales Up 10% Year-Over-Year
According to the London and St. Thomas Association of Realtors (LSTAR) for August 2025, the market saw its strongest August since 2021. A total of 616 homes were sold, up 10.4% from the same month last year, while inventory levels climbed to their highest point in 10 years at 5 months of supply.
The surge in new listings to 1,347 marked the highest August level since 2015. With a sales-to-new listings ratio (SNLR) of 45.7%, the market sat firmly in CREA’s balanced range of 40 to 60%. Average prices remained stable at $651,329, up 3.3% annually, while the MLS HPI benchmark edged down 1.1% MoM.
- August sales rose 10.4% YoY to 616 homes.
- New listings reached 1,347, the highest August in a decade.
- Active inventory is at 5 months of supply, the strongest since 2015.
- Average home price $651,329, up 3.3% annually.
Prices Hold Steady While Regional Disparities Widen
Average prices in London South reached $679,982, while London East remained the most affordable at $473,106. Middlesex Centre topped the list with an average of $922,033, reflecting demand in higher-end suburban markets. Across LSTAR, the composite HPI benchmark of $572,400 reflected a modest dip of 1.1% from July, but remains stable compared with the year’s earlier volatility.
Market Demand Shifts With More Options For Buyers
The influx of listings has given buyers more negotiating power, reducing bidding pressure while still sustaining healthy transaction volumes. The consistency of prices between June and August, hovering in a narrow band of $648,000 to $651,000, shows a market that is stabilizing after years of rapid swings.
Broader Economic And Policy Context
RBC Economics notes that Ontario remains under the weight of abundant inventory, which is keeping values from climbing despite national momentum. This dynamic makes London’s resilience stand out, as local demand is strong enough to absorb higher supply.
At the same time, the federal government’s Build Canada Homes initiative will channel $13 billion to accelerate construction of 4,000 homes on federal land, with projects planned in Ontario hubs including Ottawa and Toronto. While these projects won’t be located in London, this policy push signals structural support for housing supply that could indirectly influence affordability across the province.
Mortgage Impact for Buyers and Sellers in London
For homebuyers, the higher inventory offers more choice and the ability to shop without bidding wars. Sellers must price competitively to attract offers, especially as affordability pressures remain front of mind. For mortgages, the backdrop of stable prices and balanced conditions means qualifying rests more on interest rates than on escalating values. With the Bank of Canada expected to ease monetary policy, lower borrowing costs could provide a timely boost for buyers preparing to enter the London market.
Month-over-Month Market Expectations for London
Transactions – Number of Sales
The number of sales in London was 616 during August 2025, that’s decreased by 15% compared to the previous month. On a year-over-year basis, sales in London have increased by 6.8% over the last 12 months.
New Listings
The number of new listings in London was 1,347 during August 2025, that’s decreased by 17.1% compared to the previous month. On a year-over-year basis, new listings in London have increased by 1.4% over the last 12 months.
Real Estate Market
The sales to new listings ratio (SNLR) in London was 46% during August 2025, indicating a Balanced. On a monthly basis, that’s increased by 2.5% compared to the previous month. London’s yearly sales to new listings ratio has increased by 5.3% 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 $1,976 for the month of August 2025, which decreased by 4% on a year-over-year basis.
The average rent for a bachelor apartment in London was $0 for the month of August 2025, which 0 by 0% on a year-over-year basis.
The average rent for a 1-bedroom apartment in London was $1,737 for the month of August 2025, which decreased by 2% on a year-over-year basis.
The average rent for a 2-bedroom apartment in London was $2,131 for the month of August 2025, which decreased by 4% on a year-over-year basis.
The average rent for a 3-bedroom apartment in London was $1,737 for the month of August 2025, which decreased by 4% on a year-over-year basis.
How Does Renting Compare with Homeownership in London?
Each $100,000 in mortgage balance costs an average of $520.08 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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