The average residential sale price in the London housing market has decreased by 0.2 per cent year-over-year across all property types between January 1 – July 31, 2025, from $647,316 to $647,343. The number of sales decreased by four per cent for the same time period from 4,970 to 4,312. The number of listings increased by 2.1 per cent (from 10,472 in 2024 to 10,694 in 2025). Average sales prices across all property types in the London housing market are anticipated to increase by one per cent through the end of 2025, which may lead to a decrease in the number of sales, also estimated at one per cent.
Trends in the London Housing Market
London housing market in Q4 2024 experienced a balanced market characterized by about 4.5 months of inventory, and homes selling in approximately three to four weeks. Buyer activity is led by families, and young and middle-aged couples, and conditional offers are becoming more common. Prices are holding steady with only a slight 0.6 per cent dip year-over-year, while July sales were up 28 per cent from last year. Compared to 2024, inventory is higher, days on market are longer, and the pace is more measured, giving both sides some room to negotiate.
Families continue to be the primary drivers of sales in the region, a trend expected to hold steady through the rest of the year. Young and middle-aged couples are also becoming more active in the market, drawn by the area’s lifestyle appeal, relative affordability, and access to amenities. Economic uncertainty remains the region’s biggest challenge, with buyer demand easing amid a slow overall market.
While the first half of 2025 was slow, July showed an uptick in the market, which may continue into the fall. July statistics suggest that consumer confidence is slowly returning, signalling a possible rebound in potential buyer activity for the remainder of the year. First-time buyers continue to enter the market in their late twenties to early thirties, as they have in previous years, though many are increasingly relying on support from their parents and grandparents to enter the market.
Conditional sales have become the norm in the region, reflecting a market where buyers are exercising greater caution. Sellers need to recognize that escape clauses are more likely to be invoked in this slower environment, which can prolong the sales process. To remain competitive and attract serious buyers, many sellers are now willing to accept slightly lower prices. This shift highlights a broader trend toward more balanced negotiations, where buyers gain increased leverage and sellers must adjust expectations to align with current market realities.
Up and coming neighbourhoods in the region include:
Jackson Meadows: A newer, peaceful residential area featuring contemporary townhomes and detached homes surrounded by green space. The neighbourhood boasts a modern feel with natural surroundings, and is also close to Highway 401.
Hyde Park: Attractive to both local and relocating buyers, featuring new housing developments and the addition of the Village Green community space. The community is tight-knit with easy access to amenities.
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