London’s housing market has undergone significant transformation in 2025. Here’s a look at where it stands — and what to expect in 2026
Listings (Inventory of houses available for sale): On January 1 of this year there were 1,956 active listings. In the next 11 months we added 16,195 listings, therefore there were 18,150 attempts to list and sell a home this past year.
Sales: Total house sales in 2025 YTD total 6,545. Thirty-six per cent of listed properties sold. A total of 11,605 houses, or 64 per cent of listed properties, did not sell. These sales totals haven’t changed much in the last three years and reflect a decline of about 30 per cent over long-term averages.
Pricing: For the first seven months of 202,5 average pricing held around $650,000; median price held at approximately $600,000 (half the homes sold above this price, half below). Over the last four months, prices have steadily fallen, with the average price falling to $605,000 and the median price falling to $550,000. Housing prices have fallen 7.5 per cent since August.
Resale market: The resale market has normalized. There is about six months of inventory (defined as the amount of time it would take for all current listings to sell if no new listings were to enter the market) and buyers for the most part are benefitting. Good, well-priced homes are selling, although for about the same prices as we were seeing just before the pandemic hit in 2021. The wild swings of the last five years have brought us back to where we started.
New construction market: This is the most dramatic change in our market in decades. The loss of house sales can be blamed almost entirely on the collapse of the new construction market. This market is typically fuelled by investors providing deposits to get developments started and then selling those homes and condos at or near completion. That speculative investing has collapsed. The only buyers of new homes now are end users, and they tend to wait and buy finished spec homes as many have lost confidence in builders and their ability to deliver. They’ve also lost confidence that their existing resale home will sell when their new home is completed. This collapse will have far reaching effects in our housing economy, which is being felt in sector employment losses, a flight of skilled trades and future housing supply shortages in years to come.
My year end thoughts: The resale market is correcting but is still active. Nineteen houses sell every day in our market, the bulk of which are resales versus new construction. Interest rates are historically low and fixed rate mortgages aren’t likely to fall any lower. Our economy is resilient despite global trade and economic uncertainties. I would expect 2026 to largely emulate 2025. I believe we’re in the new normal and this stable resale market will be with us for the next few years. The new construction market has already adjusted, with builders offering incentives and only working with qualified buyers. The rental market has softened considerably to the benefit of tenants, and an enormous influx of new purpose-built rentals will keep that balance in check.
On a personal note, this will be my final On the House column for London Inc. It’s been a pleasure to share my thoughts about real estate with you over these past few years. London Inc. is an institution and should be applauded for its continued timely news coverage and analysis of our local economic activity. Gord should get a key to the city!
In this season of giving, please remember those among us who are less fortunate. Use this holiday season to find an agency serving our city’s most vulnerable and find a way to help in 2026. There are a half million of us in this community — we can make enormous change happen with small, individual acts of kindness and generosity.
Happy Holidays!
Market analysis provided by Marcus Plowright, Partner, A Team London. Marcus can be reached at 519-872-8326 or marcus@ateamlondon.ca.
High- and low-priced real estate listings around town this week
London East
Low
Address: 192 St. Julien Street
MLS number: X12563242
List price: $369,000
Days on market: 12
Size: 4 bedroom, 1 bathroom, 700-1,100 square feet
Listing agent: Sukhman Jassal, Broker, Gold Empire Realty Inc.
High
Address: 15 Bayside Court
MLS number: X12347183
List price: $1,199,900
Days on market: 109
Size: 3 bedrooms, 4 bathrooms, 2,000-2,500 square feet
Listing agent: Kevin Barry, Broker, Thrive Realty Group Inc. Brokerage
London North
Low
Address: 106 Thornton Avenue
MLS number: X12489618
List price: $499,900
Days on market: 33
Size: 3 bedroom, 2 bathroom, 0-699 square feet
Listing agent: Marcus Plowright, Salesperson, A Team London Brokerage
High
Address: 1577 Gloucester Road
MLS number: X12485236
List price: $3,250,000
Days on market: 35
Size: 5 bedrooms, 3 bathrooms, 6,837 square feet
Listing agent: Steve Bailey, Broker, The Agency
London South & West
Low
Address: 154 Rosamond Crescent
MLS number: X12560244
List price: $549,900
Days on market: 13
Size: 3 bedroom, 2 bathroom, 1,100-1,500 square feet
Listing agent: Sandi Cardoso, Salesperson, Century 21 Heritage House Ltd. Brokerage
High
Address: 20724 Denfield Road
MLS number: X12221123
List price: $3,599,000
Days on market: 171
Size: 3+2 bedrooms, 6 bathrooms, 3,500-5,000 square feet
Listing agent: Bobbi Maroney, Broker, StreetCity Realty Inc. Brokerage
Disclaimer: London Inc. does not guarantee the accuracy of the statistical data on this page. The data does not represent the listings of any one agent or agency but represents the activity of the real estate community in the area. Any real estate agent’s ad appearing is separate from the statistical data provided, which is in no way a part of their advertisement.
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