Will London House Prices Fall in 2025? What Experts Are Seeing Right Now

Every January, predictions flood in about where housing prices are heading — and 2025 has been no different. The question I hear most is: “Will London home prices fall this year?” The answer: prices may soften slightly, but the market’s foundation remains strong. Let’s unpack what the experts — and the numbers — actually show.

The 2025 Outlook in Numbers

According to the London & St. Thomas Association of REALTORS® (LSTAR), the average sale price for homes in the region sat at $622,805 in September 2025 — a small dip of about 2.9% year-over-year. The sales-to-new-listings ratio sits near 31%, meaning supply outweighs demand for now, a clear sign of a buyer-leaning market.

Nationally, the Canadian Real Estate Association (CREA) expects a 1–3% decline in Ontario’s average price for 2025, followed by stabilization in 2026 as borrowing costs ease. Meanwhile, OREA continues to highlight London as a market with long-term resilience, thanks to its relative affordability, population growth, and solid job base.

Why We’re Seeing a Dip — But Not a Crash

• Interest Rates: Mortgage rates have plateaued but remain above 5%. That keeps monthly payments higher, trimming some buyer budgets.

• Inventory Levels: Listings are up nearly 20% year-over-year, giving buyers more choice and slowing bidding pressure.

• Economic Cooling: As the broader Canadian economy flattens, consumer confidence naturally tempers housing demand.

Yet, demand hasn’t disappeared — it’s just become more deliberate. First-time buyers, relocators from the GTA, and investors looking for stable returns still view London as one of Ontario’s value-driven markets.

What It Means for Sellers

Sellers in 2025 face a more competitive environment — but good homes still sell well. Properties that are staged, priced correctly, and professionally marketed are finding buyers within 30–40 days. Overpricing by even 5% can cost weeks of momentum, while pricing with strategy often nets strong, clean offers.

What It Means for Buyers

For buyers, this is a window worth exploring. There’s less competition, more room for conditions, and genuine opportunities to secure quality properties below last year’s peak. Even a small price decline can offset higher interest rates in the short term, especially if you plan to refinance later.

Bottom Line

Yes, London house prices could dip modestly in 2025 — but “dip” isn’t “decline in value.” The fundamentals remain healthy, and the city’s long-term appeal hasn’t changed. Smart buyers and sellers who understand timing, strategy, and market data will come out ahead.

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If you’d like to discuss how this market shift affects your buying or selling plans — or get an updated value estimate for your home — I’d love to help.

Justin Skrypnyk

Real Estate Broker

519-639-5176