London Housing Market Outlook 2025
Table of contents
London Market Report Summary
- The average selling price of a home in London decreased by 3.1% year-over-year to $589,000 in April 2025.
- The average selling price of a single-family home in London decreased by 1.7% year-over-year to $641,300 in April 2025.
- The average selling price of a townhouse/multiplex in London decreased by 3.4% year-over-year to $490,200 in April 2025.
- The average selling price of a condo in London decreased by 2.4% year-over-year to $393,900 in April 2025.
- The average rent in London decreased by 1.0% year-over-year to $1,992 for April 2025.
- May 22, 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 $589,000 for the month of April 2025, that’s decreased by 4.1% compared to the previous month. On a year-over-year basis, London home prices have decreased 3.1% over the last 12 months.
Single-family Home Prices
The average selling price of a single-family home in London was $641,300 for the month of April 2025, that’s decreased by 3.7% compared to the previous month. On a year-over-year basis, single-family home prices in London have decreased by 1.7% over the last 12 months.
Townhouse and Multiplex Prices
The average selling price of a townhouse in London was $490,200 for the month of April 2025, that’s increased by 0.2% compared to the previous month. On a year-over-year basis, the price of a townhouse in London has decreased by 3.4% over the last 12 months.
Condo Prices
The average selling price of a condo in London was $393,900 for the month of April 2025, that’s increased by 4.0% compared to the previous month. On a year-over-year basis, the price of a condo in London has decreased 2.4% 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 April 2025 was $589,000, and it decreased of 3.1% compared to a year ago.
LSTAR also reported a sales-to-new-listings ratio (SNLR) of 43%, indicating a balanced market in London for April 2025.
London Sees Inventory Growth and Stable Prices Amid Buyer Hesitancy
According to the London and St. Thomas Association of Realtors (LSTAR), April 2025 was marked by subdued sales activity in London’s housing market, tempered by resilient home prices and growing inventory. A total of 653 homes were sold in April, down 14.3% compared to the same month last year, while active listings rose 19.6% to 2,891, offering buyers more options amid broader economic headwinds.
London Home Sales Activity Softens but Inventory Builds
The local market is facing continued pressure from trade-related economic uncertainty, which is weighing on consumer sentiment despite relatively stable mortgage rates. Year-to-date sales dropped 19.2% to 2,107 units, indicating a cautious approach by many buyers. However, listing activity remains consistent, suggesting sellers are still engaged even as the market cools.
- April sales: 653 (↓ 14.3% YoY)
- Year-to-date sales: 2,107 (↓ 19.2% YoY)
- April new listings: 1,523 (↓ 10.1% YoY)
- Year-to-date new listings: 5,190 (↑ 1.5% YoY)
- Active listings (April): 2,891 (↑ 19.6% YoY)
London Home Price Trends Remain Stable
Despite softer demand, home prices in London have remained resilient. The average home price in April was $654,147, which is only 0.5% lower than April 2024, indicating that values are holding steady even as market activity slows. Sellers can still secure prices close to historical norms, aided partly by tight market conditions over the past several years and London’s relative affordability compared to Ontario’s larger urban centres.
- Average home price (April): $654,147 (↓ 0.5% YoY)
- Price movement suggests ongoing price stability despite lower sales volume
Buyer-Seller Dynamics Shifting in London
With inventory levels rising and sales slowing, the London market is becoming more balanced, offering increased selection and less competition for buyers. While many remain hesitant due to economic concerns, particularly around tariffs and broader fiscal policy, favourable interest rates and a stabilizing price environment could attract more activity in the months ahead.
London’s housing market is adjusting to economic uncertainty with a mix of slower sales and growing inventory. Yet, stable home prices and increased supply suggest the region remains resilient. As buyers gain more leverage and options, conditions may become increasingly favourable heading into summer, especially if confidence returns following any easing of trade tensions or supportive government measures.
Month-over-Month Market Expectations for London
Transactions – Number of Sales
The number of sales in London was 653 during April 2025, that’s increased by 28.5% compared to the previous month. On a year-over-year basis, sales in London have decreased by 8.0% over the last 12 months.
New Listings
The number of new listings in London was 1,523 during April 2025, that’s increased by 24.4% compared to the previous month. On a year-over-year basis, new listings in London have increased by 6.9% over the last 12 months.
Real Estate Market
The sales to new listings ratio (SNLR) in London was 43% during April 2025, indicating a balanced market. On a monthly basis, that’s increased by 3.3% compared to the previous month. London’s yearly sales to new listings ratio has decreased by 13.9% 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 $1,992 for the month of April 2025, which decreased by 1.0% on a year-over-year basis.
The average rent for a bachelor apartment in London was $0 for the month of April 2025, which 0 by 0% on a year-over-year basis.
The average rent for a 1-bedroom apartment in London was $1,758 for the month of April 2025, which decreased by 1.0% on a year-over-year basis.
The average rent for a 2-bedroom apartment in London was $2,160 for the month of April 2025, which decreased by 1.0% on a year-over-year basis.
The average rent for a 3-bedroom apartment in London was $1,758 for the month of April 2025, which decreased by 1.0% on a year-over-year basis.
How Does Renting Compare with Homeownership in London?
Each $100,000 in mortgage balance costs an average of $533.43 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
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.
Housing Market Glossary and Definitions
MLS® Home Price Index (HPI)
The MLS® Home Price Index (HPI) is a real estate price index compiled by the Canadian Real Estate Association (CREA) that tracks the price of homes in your neighbourhood. It’s a quick way for Canadians to compare home prices in different parts of Canada and between different periods without having to factor in the unique characteristics of a particular property.
While market prices can vary from one month to the next based on seasonal factors, the Home Price Index (HPI) provides a more consistent view and tracks price trends over an extended period. The Home Price Index (HPI) is updated annually in May to reflect changes in real estate markets.
MLS® HPI is the most comprehensive and precise way to track a neighbourhood’s home price level and trends. MLS HPI uses over 15 years of data from the MLS® System and advanced statistical models to create a “typical” home based on the characteristics of homes purchased and sold. This benchmark home is tracked across all Canadian neighbourhoods and various types of homes.
Strata insurance
Strata insurance is insurance that a strata or condominium uses to cover damages to common areas, assets and liabilities to the strata. It can also include fixtures built or installed as part of the original construction of each unit, even though these may not be common structures. Strata insurance can cover the following:
- Buildings and structures on the strata’s property, including common areas such as the garage, roof, lobby, pool, etc.,
- Liabilities for any property damage or bodily harm due to an injury suffered on a strata property,
- Which also includes fixtures in the standard unit or part of the original make of each unit.
Strata insurance generally does not cover personal belongings and appliances in a condo unit. Damage caused by individual unit owners (e.g., water damage due to a unit owner’s negligence) is typically covered under personal condo insurance.
Property Types
Detached homes, also known as single-family homes, are residential properties that stand alone and are not connected to other buildings. They are legal single residential units on their own parcel of land and have a separate title.
Semi-detached homes are characterized by their unique architectural design. Two houses are built side by side and share a common wall. Although sharing a building, semi-detached homes have their own parcel of land and separate legal titles.
Townhouses are residential dwellings typically characterized by narrow, tall structures, often sharing walls with neighbouring units. Although they may share yards or common elements with their neighbours, townhouses will have separate legal titles from any adjoining building. Townhouses can be purchased as freehold or leasehold within a condo or strata and may come with their own land parcel. Townhouses can be part of a low-rise or high-rise building.
Condo apartments, also known as condominiums, are residential properties that combine elements of apartments and individual homes. It is a unit within a larger building or complex owned by an individual who also shares ownership of common areas and amenities with other residents. Condo apartment owners have legal ownership of their units and can modify them within the guidelines set by the condominium association. Unlike a townhouse, condos do not offer exclusive use of outdoor space unless they come with a balcony or terrace. Condos can be part of a low-rise or high-rise building.
Plexes or multiplexes are unique residential buildings constructed into 2 to 6 units within a single structure. Traditionally, they have been designed as low-rise residential buildings where any unit is accessible via an external entrance with higher floors connected by staircases. Each unit will have a separate registration and title but may share common elements and co-ownership fees with the other multiplex owners. Plexes are common in Québec and older parts of Toronto.
Property Ownership Classes
A freehold is a type of property ownership where an individual or entity has complete and indefinite ownership rights over a property and its parcel of land. Common freehold property types include detached houses, semi-detached houses, farms, and townhouses not part of condominium corporations.
A condominium or condo is a distinct type of property class that combines apartment living and individual homeownership elements. In a condominium, individual units are owned by the residents, while the common areas and amenities are shared among all the unit owners. This type of ownership gives you rights to your specific unit and some rights and responsibilities to the common areas, such as the hallways, elevators, garage, pool and rooftop patios.
A leasehold is a legal arrangement where a person or entity holds the right to use and occupy a property for a specific period, typically through a lease agreement. In some cases, the leaseholder may own the building or unit and rent the land from the landowner (landlord).
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