London Housing Market Outlook 2026
London Home Sales See a Lift in December as Supply Keeps Conditions in Check for 2026
London’s housing market showed a modest but encouraging pickup in December, with sales posting a slight year-over-year gain and marking the strongest December since the early part of the decade. The sales-to-new-listings ratio jumped sharply from November, briefly pushing conditions toward seller-leaning territory, even as inventory remained historically elevated and months of supply remained above balanced levels. Prices firmed month over month, but benchmark values continued to edge lower across most housing types, highlighting a market where improved activity is emerging without reigniting broad price pressures, according to data from the London and St. Thomas Association of Realtors (LSTAR).
Looking into 2026, expectations centre on gradual normalization rather than a surge, with steady inventory levels keeping a lid on rapid price growth even if sales momentum improves. If buyer confidence continues to rebuild, London could see more consistent activity through the year. Still, the depth of available supply suggests conditions should remain relatively balanced, with selective competition rather than widespread bidding pressure.
London Housing Market Highlights
- The average selling price of a home in London decreased by 8.3% year-over-year to $552,800 in December.
- The average selling price of a single-family home in London decreased by 7.9% year-over-year to $610,700 in December.
- The average selling price of a townhouse/multiplex in London decreased by 12.5% year-over-year to $435,000 in December.
- The average selling price of a condo in London decreased by 17.5% year-over-year to $324,000 in December.
- The average rent in London is now $1,914 for December.
- January 20, 2026: Today’s lowest mortgage rate in London is
for a 5-year fixed.
Data from the London and St. Thomas Association of Realtors (LSTAR) indicates that the average price of resale residential homes sold across London in December was $552,800, and itdecreased of 8.3% compared to a year ago.
LSTAR also reported a sales-to-new-listings ratio (SNLR) of 72%, indicating Sellers market conditions in London for December.
Composite Home Prices
The average selling price of a home in London was $552,800 for the month of December, that’s decreased by 1.3% month over month. On a year-over-year basis, London home prices have decreased 8.3% year-over-year.
Single-family Home Prices
The average selling price of a single-family home in London was $610,700 for the month of December, that’s decreased by 0.4% month over month. On a year-over-year basis, single-family home prices in London have decreased by 7.9% year-over-year.
Townhouse and Multiplex Prices
The average selling price of a townhouse in London was $435,000 for the month of December, that’s decreased by 5.2% month over month. On a year-over-year basis, the price of a townhouse in London has decreased by 12.5% year-over-year.
Condo Prices
The average selling price of a condo in London was $324,000 for the month of December, that’s decreased by 1.8% month over month. On a year-over-year basis, the price of a condo in London has decreased 17.5% year-over-year.
Transactions – Number of Sales
The number of sales in London was 398 during December, that’s decreased by 19.1% month over month. On a year-over-year basis, sales in London have decreased by 5.5% year-over-year.
New Listings
The number of new listings in London was 556 during December, that’s decreased by 44.1% month over month. On a year-over-year basis, new listings in London have increased by 2.8% year-over-year.
Real Estate Market
The sales-to-new-listings ratio (SNLR) in London was 72% during December, indicating a Sellers. On a monthly basis, that’s increased by 44.6% month over month. London’s yearly sales to new listings ratio has decreased by 8% year-over-year.
The sales-to-new-listings ratio (SNLR) measures the number of home sales compared to new listings. An SNLR below 40% suggests a buyer’s market, where buyers have the upper hand and greater 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
London Market Rents Snapshot
The average rent in London was $1,914 for the month of December.
The average rent for a 1-bedroom apartment in London was $1,648 for the month of December, which decreased by 6.4% year over year.
The average rent for a 2-bedroom apartment in London was $2,057 for the month of December, which decreased by 4.9% year over year.
Rental Price Changes by City
Rental Price Changes by Province
Rental Price Growth by Housing Type
How Does Renting Compare with Homeownership in London?
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Frequently Asked Questions (FAQ) on London Housing Market Outlook for 2026
Will home prices in London rise in 2026?
London’s home prices are expected to stabilize with slight increases in 2026. 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 2026?
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?
Stabilizing mortgage rates paired with lower home prices in 2026 could increase affordability, attracting first-time homebuyers (FTHB) and investors to London’s housing market.
How affordable will London homes be in 2026?
London’s housing prices will remain significantly more affordable than those of cities like Toronto. Options for single-family homes, condos, and townhouses will suit a range of budgets.
What trends will drive London’s housing market in 2026?
Affordability, rising demand from GTA buyers, and population growth will continue to drive London’s housing market through 2026.
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