London Housing Market Outlook 2025
Table of contents
London Market Report Summary
- The average selling price of a home in London decreased by 6.7% year-over-year to $578,900 in July 2025.
- The average selling price of a single-family home in London decreased by 4.9% year-over-year to $632,800 in July 2025.
- The average selling price of a townhouse/multiplex in London decreased by 7.9% year-over-year to $473,100 in July 2025.
- The average selling price of a condo in London decreased by 13.1% year-over-year to $366,000 in July 2025.
- The average rent in London decreased by 3% year-over-year to $1,987 for July 2025.
- August 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 $578,900 for the month of July 2025, that’s decreased by 0.3% compared to the previous month. On a year-over-year basis, London home prices have decreased 6.7% over the last 12 months.
Single-family Home Prices
The average selling price of a single-family home in London was $632,800 for the month of July 2025, that’s decreased by 0.3% compared to the previous month. On a year-over-year basis, single-family home prices in London have decreased by 4.9% over the last 12 months.
Townhouse and Multiplex Prices
The average selling price of a townhouse in London was $473,100 for the month of July 2025, that’s decreased by 0.9% compared to the previous month. On a year-over-year basis, the price of a townhouse in London has decreased by 7.9% over the last 12 months.
Condo Prices
The average selling price of a condo in London was $366,000 for the month of July 2025, that’s increased by 0.5% compared to the previous month. On a year-over-year basis, the price of a condo in London has decreased 13.1% over the last 12 months.
We’re curious…
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 July 2025 was $578,900, and it decreased of 6.7% compared to a year ago.
LSTAR also reported a sales-to-new-listings ratio (SNLR) of 45%, indicating a Balanced in London for July 2025.
London Posts Best July Since 2021 with Home Sales Up 28%
According to the London and St. Thomas Association of Realtors (LSTAR), London and St. Thomas recorded 725 home sales in July 2025, a 28.1% increase compared to the same month last year and the highest July sales since 2021. This surge came during a time when market activity typically slows, signalling renewed buyer interest. Inventory remained healthy, with a sales-to-new-listings ratio (SNLR) of 44.6%, which falls within the range considered a balanced market by CREA.
Prices Hold Steady as Market Balances
The average sale price for July was $648,273, virtually unchanged from June and only 0.6% lower than a year ago. The HPI composite benchmark price stood at $578,900, down 0.3% month-over-month and 1.7% from April. Benchmark prices varied across the region, from $453,100 in London East to $806,300 in Middlesex Centre. By property type, single-family homes recorded a benchmark of $632,800, 2-storey homes held steady at $680,800, and apartments rose slightly to $366,000, though still 7.1% below April levels.
- July home sales: 725 home sales, up 28.1% YoY
- Average sale price: $648,273, unchanged from June and down 0.6% YoY
- HPI composite benchmark price: $578,900, down 0.3% from June and 1.7% from April
- Apartment benchmark: $366,000, up slightly from June but 7.1% lower than April
Regional Competitiveness and Outlook
Compared to other provincial and national markets, homes in the London area remain competitively priced, offering value to buyers seeking affordability within Ontario. Balanced conditions suggest a market where both buyers and sellers can negotiate with confidence, supported by steady pricing and growing inventory. With the Bank of Canada holding its policy rate at 2.75%, borrowing costs remain stable, helping maintain momentum in the local housing market.
Impact on Mortgages and Homebuyers in London
London’s market offers a favourable balance for buyers, with competitive pricing and ample supply creating room to negotiate. Renewers will still encounter higher monthly payments compared to previous terms, but the stability in local prices provides some cushion. Homeowners looking to refinance can leverage steady home equity levels in most property types, though townhouse owners may face reduced valuations. For the Bank of Canada, London’s stability suggests little urgency to adjust rates, keeping the focus on sustaining affordability while inflationary pressures ease.
Month-over-Month Market Expectations for London
Transactions – Number of Sales
The number of sales in London was 725 during July 2025, that’s decreased by 2.7% compared to the previous month. On a year-over-year basis, sales in London have increased by 20% over the last 12 months.
New Listings
The number of new listings in London was 1,625 during July 2025, that’s decreased by 10.4% compared to the previous month. On a year-over-year basis, new listings in London have increased by 6.1% over the last 12 months.
Real Estate Market
The sales to new listings ratio (SNLR) in London was 45% during July 2025, indicating a Balanced. On a monthly basis, that’s increased by 8.6% compared to the previous month. London’s yearly sales to new listings ratio has increased by 13.1% 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
We’re curious…
London Market Rents Summary
The average rent in London was $1,987 for the month of July 2025, which decreased by 3% on a year-over-year basis.
The average rent for a bachelor apartment in London was $0 for the month of July 2025, which 0 by 0% on a year-over-year basis.
The average rent for a 1-bedroom apartment in London was $1,751 for the month of July 2025, which decreased by 2% on a year-over-year basis.
The average rent for a 2-bedroom apartment in London was $2,147 for the month of July 2025, which decreased by 3% on a year-over-year basis.
The average rent for a 3-bedroom apartment in London was $1,751 for the month of July 2025, which decreased by 3% on a year-over-year basis.
How Does Renting Compare with Homeownership in London?
Each $100,000 in mortgage balance costs an average of $528.19 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 2.75%, and nesto’s prime rate is set to 4.95%.
Rental Price Changes by City
Rental Price Changes by Province
Rental Price Growth by Housing Type
We’re curious…
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.
Why Choose nesto
At nesto, our commission-free mortgage experts, certified in multiple provinces, provide exceptional advice and service that exceeds industry standards. Our mortgage experts are non-commissioned, salaried employees who provide impartial guidance on mortgage options tailored to your needs and are evaluated based on client satisfaction and advice quality. nesto aims to transform the mortgage industry by providing honest advice and competitive rates using a 100% fully digital, transparent, seamless process.
nesto is on a mission to offer a positive, empowering and transparent property financing experience – simplified from start to finish.
Contact our licensed and knowledgeable mortgage experts to find your best mortgage rate in Canada.
Ready to get started?
In just a few clicks, you can see our current rates. Then apply for your mortgage online in minutes!
