Are London Ontario house prices falling

If you’ve been watching the housing headlines for the London region, you’re probably wondering: “Are home prices in London, Ontario actually falling?” Good question. The short answer: yes — the data shows downward pressure, but there’s nuance behind what that means for buyers and sellers.

What the Numbers Show

According to the London & St. Thomas Association of REALTORS® (LSTAR), the average selling price across London dropped to around $622,805 in September 2025, down 4.4% from the previous month and 2.9% year-over-year. Meanwhile, the sales-to-new-listings ratio (SNLR) narrowed to approximately 31%, indicating a market that is clearly leaning in favour of buyers rather than sellers. On a national scale, the Canadian Real Estate Association (CREA) forecasts a slight decline in the average Canadian home price in 2025, with Ontario included among the regions expected to soften.

What’s Driving the Drop?

Several factors are contributing to the drop in London’s market:

• Elevated inventory: New listings in London rose year-over-year, increasing choice for buyers and reducing urgency.

• Interest-rate stress & affordability: With mortgage rates higher than the recent past, many buyers are stepping back and waiting for better conditions.

• Shift in market psychology: When expected price growth softens, buyer urgency often slows and sellers adjust prices downward to attract attention.

What This Means for Buyers & Sellers in London

For Buyers:If you’re ready to purchase, this is a favourable window. With downward pressure on prices, fewer multiple-offer wars, and more negotiating power, you’ll have more choice and leverage.

Tip: Get your financing locked in and let me help you identify neighbourhoods where value is still strong.

For Sellers:While the market has cooled, it doesn’t mean you can’t get a strong result — those priced correctly and marketed well are still attracting qualified buyers. The key is to position your home to stand out among increased competition.

Bottom Line

Yes — house prices in London, Ontario are falling, but it’s not “panic drop” territory. What we’re seeing is a market transitioning from seller-leaning to a more balanced or slightly buyer-advantaged environment. That shift doesn’t eliminate value — it changes how you capture it. Whether you’re buying or selling, informed decisions and local insight matter more than ever.

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If you’d like a personalized review of what this means for your London neighbourhood — and how your timing and goals might tie into what’s happening — let’s connect.

Justin Skrypnyk 

Real Estate Broker 

519-639-5176