Will house prices drop in London, Ontario

It’s the question on every buyer and seller’s mind: “Will house prices in London, Ontario drop this year?” After two years of sharp fluctuations, the 2025 market is starting to settle — and while we’re seeing modest softening, the data paints a more balanced picture than many headlines suggest.

The Data Behind the Forecast

According to the London & St. Thomas Association of REALTORS® (LSTAR), the average home price in London for September 2025 was $622,805, down about 2.9% year-over-year but still well above pre-pandemic averages. The benchmark price, which smooths out the influence of luxury sales, remains steady around $580,000.

CREA’s national forecast anticipates a 1–2% correction across Ontario for 2025, citing persistent affordability challenges and higher borrowing costs. That puts London in a period of mild adjustment — not a crash, just a normalization.

Why a Modest Dip Isn’t Bad News

It’s important to remember that real estate markets move in cycles. After years of rapid appreciation, a cooling phase allows wages, construction, and affordability to catch up. London’s fundamentals remain strong: a growing population, stable employment, and a diverse housing supply from infill projects to suburban new builds.

OREA notes that while high-rate environments tend to curb demand, they also limit speculative buying — which helps keep markets like London sustainable over time.

What Buyers Should Do

If you’re looking to buy, this is a market to move strategically in. More listings and fewer bidding wars mean you can negotiate and inspect properly — things buyers missed out on during the frenzy. Focus on long-term value and financing stability rather than short-term price dips.

What Sellers Should Know

For sellers, presentation and pricing are everything right now. Homes listed 3–5% below inflated spring comparables are getting attention and offers, while overpriced listings linger. The silver lining: serious buyers are back, and well-maintained properties in sought-after neighbourhoods (like Oakridge, Byron, and Masonville) are still selling efficiently.

Bottom Line

Will prices drop? Slightly — but London remains one of Ontario’s most stable, affordable cities relative to its amenities and growth. For both buyers and sellers, this is a market where strategy and expert guidance make all the difference.

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Want to know what this means for your specific neighbourhood or property? Let’s chat — I’ll walk you through current values and opportunities tailored to your goals.

Justin Skrypnyk

Real Estate Broker 

519-639-5176