The average residential sale price in London has decreased by 0.5 per cent year-over-year across all property types between in 2025, from $644,090 to $$640,886. The number of sales transactions decreased by 3.6 per cent for the same time period (from 6,280 to 6,057). The total number of listings increased by 25.1 per cent (from 2,297 in 2024 to 2,873 in 2025). Average residential sale prices will remain stable going into 2026, compared to 2025. Sales are anticipated to rise by five per cent going into 2026, compared to 2025
Trends in the London Housing Market
Looking ahead to 2026, London will continue to be a buyers due to ongoing lowering interest rates increasing affordability. The top three neighbourhoods anticipated to be the most desirable in the region in 2026 are East London and South London due to affordability, finding homes under $600,000. East London offers both affordability and walkable communities whereas South London offers increased convenience and perceived safety. Single- detached homes are expected to see the strongest demand and sales activity in the region in 2026.
Buying/Selling Trends for homebuyers and sellers looking ahead to 2026:
- First-time Homebuyers are buying move-in ready townhomes, condos and smaller detached homes falling between $400,000 and $550,000
- Move Up/Over Homebuyers are buying homes with yard space, larger properties and a good community with room for growing families falling between $700,000 and $900,000.
- Retirees are downsizing to properties with lower maintenance and one floor living, including condominiums, bungalows and townhomes. Many are choosing 'active adult' communities with nearby amenities including medical services.
- New-home construction activity is comprised of townhomes and semi-detached properties with single family projects slowing.
Declining interest rates should boost buyer confidence and activity in 2026, especially among first-time and move-up buyers. If rates rise again, momentum will slow. Economic uncertainty in the automotive industry has strong impacts on job security in the region leaving some buyers sidelined awaiting more stability.
Technology has completely reshaped how buyers search for homes in London. Many start their search online, using MLS platforms, virtual tours and social media reels to preview listings prior to booking showings. AI tools help buyers match suitable properties faster while agents use targeted social ads and personalized content to reach specific demographics.
