Key Takeaways The benchmark price for a home in Metro Vancouver was $1,261,100 in May 2022, a 15% year-on-year increase compared to May 2021.House prices have risen in Vancouver for 24 months until May 2022, where they dropped for the…
- London, Ontario has seen some of the highest growth in house prices of any Canadian city in the last two years
- The average sold price of a London home was $807,540 in the city of London, Ontario
- London’s growing population and sustained demand for housing is likely to further increase prices in 2022 by 7.5 – 10%
London, Ontario Housing Market Outlook (2022)
London, Ontario has experienced one of the fastest growth rates of any housing market in Canada during the pandemic, according to the MLS® Home Price Index. Since January 2020, London’s average house price has skyrocketed from a benchmark price of $404,300 to $774,200 in March 2022 – an increase of 91.5%. That means, in just two years, house prices in London have nearly doubled. As of March 2022, the average sold price of a residential property in London sits at just under $825,000, itself a 30% increase on the year before. The levels of appreciation seen in London are in line with other major housing markets in Ontario, which has seen sustained growth across the province due to limited supply and pent-up demand due to COVID-19.
However, there are signs of the market beginning to (finally) cool off somewhat. In March 2022 the average sold price of a home in the City of London was $807,540, a monthly decrease of 2% compared to February 2022’s average price of $823,842. Sales in London and St. Thomas have declined almost 20% since March 2022, at 1,049 down from 1,296 last year. Listings are stable, with 1,544 new listings in March 2022, which almost exactly matches the number of listings in the same month last year (1,540). Additionally, sales-to-new listings has fallen from last year, suggesting that while London remains a strong seller’s market, it is not as intense as it was last year, since sales are not outpacing new listings so dramatically. According to LSTAR, April’s home sales were on par with 10-year averages, and the sales-to-new listings ratio (SNLR) was just 54.5%. For context, an SNLR of 70% is considered a strong seller’s market.
Who’s buying London real estate?
First time homebuyers
From the start of the pandemic, homebuyer preferences have shifted towards more space, larger yards, and closer proximity to nature. Lifestyle shifts – such as the mass adoption of remote working and a tendency to move away from highly-urbanized areas – have made London a particularly attractive destination for first-time homebuyers. According to RE/MAX, first-time buyers have been a primary driver of the London market in 2021, with many looking for condos, townhouses, or semi-detached homes, in particular. Some reports suggest that London may be returning to a more reasonable level of affordability for first-time buyers.
Out-of-province home buyers
According to the 2021 census, London was the fastest growing city in Ontario, and the 4th-fastest growing city in Canada. While the provincial government has recently taken steps to dissuade out-of-province homebuyers by introducing a 20% tax, the pandemic saw an influx of new homebuyers in London from other provinces, as well as further afield. According to CBC, half of all people moving to London in the pandemic came from overseas, while a third came from other cities in Ontario, and the rest were either local births or out-of-province movers.
A recent RE/MAX report on Canada’s luxury housing market showed how the pandemic has accelerated sales of homes at price points beyond the $1 million mark in London, and other Ontario cities. Based on local real estate board data, RE/MAX Canada found that London experienced some of the highest price appreciation in the country, where sales of homes over $1 million increased over 255 percent. However, many of these sales are based on London’s already rising prices, and the many homes that have crossed the $1 million threshold, homes that may not have been considered luxury housing at all just two years ago.
Average Home Prices in London, Ontario
The average price of a home in London, Ontario, was $823,954 in March 2022, a 30% increase year-on-year. Townhouses saw the highest percentage growth change at +36%, with the average price of a townhouse in London costing $692,187 in March 2022. Both condominiums and detached single-family homes also saw significant gains in price throughout 2021 and 2022, with price increases of around 30% each, year-on-year. Overall, London house prices followed most Ontario housing markets, with sustained growth throughout the pandemic, record highs in prices and – more recently – the beginnings of a slowdown in price appreciation.
|Property Type||Average Price (March 2022)||Year-on-year Price Change (%)||Units Sold (March 2022)||New Listings (March 2022)|
|All property types||$823,954||+30%||1003||1465|
London, Ontario Breakdown by Region for 2021-2022
Here are the average sale prices for the top neighborhoods in London, Ontario, as of March 2022. To see how much your mortgage payments would cost in one of these areas, you can use our mortgage calculator.
|Location||Average sale price in 2021|
Red hot rates impacting your housing market experience?
With nesto, you can get a low rate with a 150 day hold.
Reports Indicate Strong 2022 for London, Ontario Housing Market
While house prices in London may not be rising at the same jaw-dropping rates they were before, London’s real estate market is expected to remain strong throughout 2022. London continues to experience some of the highest migration rates of any city in the country, and demand for housing is at an all-time high. While interest rate increases are likely to cool off demand for homes across the country, London’s comparative affordability against other Ontario urban centers is expected to keep demand high. Coupled with already historically-low supply levels, even with sales numbers dropping, prices in London are expected to remain high for the foreseeable future.
Frequently asked questions
Is the London housing market going to crash?
London has experienced record population and house price growth over the pandemic, and these are expected to continue to grow at a steady rate. London’s housing market is not anticipating a crash in 2022, even with rising interest rates and low supply.
Will London housing prices increase in 2022?
According to Royal LePage’s home price forecast for 2022, London prices are expected to rise between 7.5 and 10 percent, driving the average price of a home close to the $900,000 mark in the city.
How do I get approved for a mortgage in London?
The easiest way to get a mortgage in London is to start by exploring the best mortgage rates available, then calculate how much mortgage you can afford according to your down payment and the value of the property. Approval guidelines will vary based on the lender you want to choose, so it’s worth discussing these factors with one of our mortgage advisors to see what solution fits for you. At nesto, we compare the best mortgage rates on the market, and we also lend directly.
London is a popular location for Ontarians, and other Canadians who are looking for a balance of affordability and city living in the province. With a growing population and its proximity to Toronto, London is becoming increasingly more competitive to find a home. If you’re looking to get approved for a mortgage in London, speak to one of our trained mortgage advisors today, and we’ll help you take the next steps to buying your home in the city.
Ready to get started?
In just a few clicks you can see our current rates. Then apply for your mortgage online in minutes!