Are House Prices Expected to Rise Again in London, Ontario?

After a period of cooling, many London homeowners and buyers are asking the same thing:“Are house prices in London expected to rise again?”And the answer — based on the 2025 data — is yes, but with a gradual, steady climb rather than a sudden jump.

1. What the Latest Numbers Tell Us

The London & St. Thomas Association of REALTORS® (LSTAR) reports the average home price in late 2025 is hovering around $620,000, slightly down year-over-year but stabilizing month-to-month.

Nationally, CREA projects a 1–3% increase in average home prices in Ontario starting in 2026, as interest rates begin to ease and demand returns.

OREA’s provincial outlook highlights London as one of the more resilient mid-sized markets thanks to affordability relative to the GTA and constant in-migration.

2. Why London Prices Are Expected to Rise

✔ Interest Rates Will Begin Dropping in 2025–2026

Economists across RBC, TD, and BMO expect slow, steady rate cuts.Lower borrowing costs = more buyers re-entering the market.

✔ Strong Population Growth

London continues to welcome:

• GTA families looking for affordability

• International students

• Healthcare and tech workers

• Newcomers to Canada

More people = more demand = upward price pressure.

✔ Limited Long-Term Supply

Even with new builds, London doesn’t have enough inventory to keep up with growth.Supply constraints support long-term price appreciation.

3

. The 5-Year Price Outlook (2025–2030)

2025: Stabilization

Little movement, prices flat to slight increase.

2026–2027: Modest growth

CREA projects 2–4% increases annually as rates fall.

2028–2030: Steady appreciation

Population, affordability, and supply issues combine to support 3–5% yearly growth.

This is the healthy, sustainable type of growth London is known for.

Bottom Line

Yes — London home prices are expected to rise again over the next five years.The big swings are behind us, and the next chapter is steady, predictable appreciation.

If you’d like a personalized look at how this forecast affects your buying or selling plans, I’d be happy to help.

Justin Skrypnyk

Real Estate Broker

519-639-5176