London Housing Market Report
- Average home prices in London, Ontario, have increased by 0.4% over the past month to $639,486 for January 2025, which is 5.6% higher than in January 2024.
- The benchmark price of a home in London-St. Thomas for January 2025 was $617,300, 7.1% higher than last January and 1.2% high than last month.
- Single-family average price increased by 6.8% year-over-year to $706k.
- Townhouse average price remained unchanged year-over-year at $504k.
- Apartment average price increased by 9.1% year-over-year to $348k.
- February 22, 2025 Update: Today’s Lowest mortgage rates in London is 3.87% for 3-Year Fixed
London-St. Thomas Housing Market Overview
London-St. Thomas Housing Market: Price Movements for January 2025
Benchmark Home Price | $617,300 | +1.2% 1-Month Change | +7.1% 1-Year Change |
Average Home Price | $639,486 | +0.4% 1-Month Change | +5.6% 1-Year Change |
Median Home Price | $585,500 | -0.8% 1-Month Change | +0.5% 1-Year Change |
Home Prices
Home Prices
In January 2025, the average home price in the London-St. Thomas housing market was $639,486, reflecting a 0.4% month-over-month increase and a 5.6% year-over-year rise. The average home price is approximately 23% below the all-time high in February 2022. So, the London area's housing market is still in a bear market, with the average home price being over 20% lower than the peak. In fact, based on the average price, London’s housing market has been a bear market for 22 of the last 29 months.
The median price often gives a better estimate of the market prices by discounting the outliers. The median price of $585,500 in January 2025 increased by a modest 0.5% from last January and decreased 0.8% from last month. However, it represents an increase of 40% from five years ago. It is also noteworthy that the median home price decreased by 23% from three years ago, which means that home prices increased tremendously between January 2019 and January 2021 before they began to fall.
Regional Comparison
Looking specifically at the City of London, Ontario, in January 2025, the median home price was $589,950, reflecting a 0.8% increase in a year. A total of 248 homes were sold in the City of London, Ontario, in January 2025, 26.2% less than in January 2024.
St. Thomas's median price was $540,000 in January 2025, a decrease of 6.9% from last January. 47 homes were sold in January 2025, 2.1% lower than last January.
Meanwhile, looking at other smaller regions in the market, Elgin had a median price of $750,000, Middlesex had a median price of $860,000, and Strathroy-Caradoc had a median price of $622,500. The smaller markets have very few sales and thus experience much greater variation in median home prices on a monthly and annual basis.
Sales and New Listings
London and St. Thomas housing market had 370 sales in the month, representing 15.7% lower sales than in January 2024 and 12.1% lower than in December. On the other hand, 1,088 new listings came onto the market in January 2025, 24.6% more than the new listings in January 2024 and 101% more than last month. While the number of sales decreased year-over-year, new listings were higher than in January 2024. This shows that while sellers have returned to the market, buyers are delaying their purchasing plans.
The sales-to-new-listings ratio (SNLR) for London and St. Thomas in January 2025 was 34%, decreasing significantly from last month’s 78%. An SNLR of below 40% typically means that the market favours the buyers. However, since the market activity drops considerably around this time of the year, January’s SNLR may not be a fair representation of the market conditions. Meanwhile, an SNLR between 40% and 60% usually indicates balanced market conditions, meaning the market neither favours the sellers nor the buyers. Throughout 2024, London’s housing market remained balanced based on the SNLR, except in June, September, and December.
At the end of January 2025, there were 2,068 active listings, reflecting a 21.8% increase in inventory over the past year.
Additional Ratios
The sale-to-list price ratio measures a home's average sale price compared to its average listing price. In January 2025, the sale-to-list price ratio for London-St. Thomas was 97.6%, indicating that houses are selling about 2.4% below the asking price. In comparison, when home prices in London peaked in February 2022, the sale-to-list price ratio was 122.9%.
At the end of January 2025, there were 5.6 months of inventory, significantly higher than the 0.5 months observed at the end of January 2022.
Property Types
Breaking down the London and St. Thomas real estate market into property categories, 273 single-family homes were sold in January 2025, along with 60 townhouses and 26 apartments.
- The median selling price of a single-family home in the London and St. Thomas area was $645,000 for January 2025, increasing by 2.4% year-over-year.
- The median selling price of townhouses in London-St. Thomas was $520,000, down by 0.6% year-over-year.
- Apartments had a median selling price of $310,950 in January 2025, down by 3.7% from last year.
Due to the fewer sales of townhouses and apartments, their average and median prices fluctuate more month-over-month and year-over-year.
Reasoning
Home prices in the London-St. Thomas's housing market saw massive gains during the pandemic. However, when the mortgage rates rose in 2022, mortgage affordability was negatively impacted. As a result, demand fell sharply and caused home prices to plunge as well.
The Bank of Canada started cutting its policy rate in June 2024, delivering six rate cuts so far. Meanwhile, the mortgage rate forecast suggests there will be more rate cuts in the coming months. The imminent U.S. import tariffs are also likely to impact mortgage rates in the coming months. A drop in mortgage rates will improve affordability, which may increase demand in London’s housing market.
Meanwhile, the new mortgage rules implemented in December 2024, which now qualify homes up to $1.5M for mortgage insurance, may also have some impact on the demand. This is because a lower downpayment is now required to purchase homes up to this price limit. However, it is noteworthy that most homes in London are priced well below the previous mortgage insurance price limit of $1M, so the change in rules would not have as significant an impact as in a city like Toronto, where the average home price is over $1M.
Comparison
Even though London's home prices have seen considerable gains over the past ten years (a 160% increase in average price), the homes in London’s housing market are still affordable compared to some other Canadian housing markets. Toronto’s housing market is a two-hour drive away, with average home sold prices over $1 million. Other housing markets in Ontario, such as the Brampton housing market and Mississauga housing market, also feature average home prices around the $1 million mark. Comparable Ontario cities to London include the real estate market in Hamilton and Ottawa’s relatively affordable housing market.
Home Prices in London
London-St. Thomas Area Housing Market Statistics for All Property Types in January 2025
Average Sold Price and MLS HPI Benchmark Price
Transactions and New Listings
Market Overview for Detached Homes in January 2025
Average Sold Price
New Listings
Market Overview for Townhouses in January 2025
Average Sold Price
New Listings
Market Overview for Condo Apartments in January 2025
Average Sold Price
New Listings
London-St.Thomas Breakdown by Region for January 2025
Glossary and Definitions
MLS® HPI: The MLS® Home Price Index (HPI) is an index by the Canadian Real Estate Association (CREA) that tracks the prices of homes in a neighborhood. It allows Canadians to quickly compare home prices across Canada and between periods of time without having to account for specific features of a property. Unlike market prices, which can fluctuate from month to month based on seasonal dynamics, the HPI provides a stable view tracks trends across a longer period of time. The HPI is reviewed every year in May to adjust for changes in the real estate marketplace.
MLS® HPI Benchmark Price: The MLS® Home Price Index (HPI) Benchmark Price is the HPI translated into a real-world price number.
Strata Insurance: Strata insurance is insurance used by a strata like a condominium to covers damages to common areas and assets and liability 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. The insurance can cover:
- Buildings and structures associated with the strata including common areas such as the roof, parking garages, driveways, gyms, pools, etc.
- Liability for any property damage or bodily injury suffered on strata property
- Any fixtures that are part of the "standard unit" or original construction of each unit
Strata insurance does not usually include personal items and appliances that are part of a condo unit. It also does not cover the damages made by individual unit owners, such as in the case of water damage caused by a unit owner. These are usually covered by personal condo insurance.
Property types
Detached home: A detached home is your standard single-family home. It is a residential building that stands alone and is separately titled or legally a single unit.
Semi-detached home: A semi-detached home is similar to a detached home, except it shares a wall with another home. This pair of homes must make up an independent building and each should be separately titled or legally two separate units. There can only be two homes in a semi-detached building.
Townhouses: A townhouse is the middle between a detached/semi-detached home and a condo apartment. Like detached and semi-detached homes, they are often single-family units that have their own land and may be attached to other units. However, like condo apartments, they typically have to pay co-ownership fees for maintenance and may share some common features with their neighbors.
Condo apartment: This category includes all apartments and condominiums. These are complexes of residential units with common areas such as hallways, parking lots, stairwells, etc. They can be low-rise, mid-rise, or high-rise buildings. Unlike townhouses, there are no parts of the lot (the land of the building) where access is reserved for only one owner or occupant. There can be privately owned units and spaces inside the building.
Plexes are multi-story buildings with two to four individual units, usually one on each floor. They are a mainstay in Montreal and other cities in Quebec. Each unit is usually individually accessible via an external entrance with higher floors connected by staircases.
Property Classes
Freeholds: A freehold is any property where the owner owns both the house and the land it is built on. Common freehold property types include: detached, semi-detached, some townhouses, and farmland.
Condominiums: A condominium or condo is any property where the owner owns the home (or unit) but shares ownership of the land and other improvements with a condominium corporation. Common condominium property types include condo apartments and some townhouses.
Leasehold: Leasehold describes the situation where different entities own the land and the structure built on the land. Owner of the buildings has leased the land and pay rent to their landlord while owning the building on the land.
Housing Markets Across Canada
Data sourced from the LSTAR and the Canadian Real Estate Association (CREA). Any analysis or commentary is the opinion of the analysts at WOWA.ca and should not be construed as investment advice. Please consult a licensed real estate professional before making a real estate investment decision. The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA.
Disclaimer:
- Any analysis or commentary reflects the opinions of WOWA.ca analysts and should not be considered financial advice. Please consult a licensed professional before making any decisions.
- The calculators and content on this page are for general information only. WOWA does not guarantee the accuracy and is not responsible for any consequences of using the calculator.
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- Interest rates are sourced from financial institutions' websites or provided to us directly. Real estate data is sourced from the Canadian Real Estate Association (CREA) and regional boards' websites and documents.
- The trademarks MLS®, Multiple Listing Service®, and associated logos are owned by CREA and identify services provided by its members.