What’s Happening in the London Housing Market?
The average residential sale price in the greater London housing market decreased by 6.7 per cent across all property types between July 2025 and July 2026, down from approximately $646,309 to $603,006. Meanwhile, the number of sales decreased by 4.9 per cent over the same period, from 721 to 686, and the number of new listings also decreased by 5.1 per cent, falling from 1,626 to 1,543.
Looking ahead, average 2026 sale prices are expected to decline by approximately two per cent below 2025 levels, while the number of sales is expected to decline by about one per cent.
London and the surrounding area is currently a balanced market with higher inventory levels and significantly more choice for buyers. In July, the London and St. Thomas region had approximately 4.9 months of inventory and 3,367 active listings. Buyers are taking more time, are more selective and price-conscious, and have somewhat greater negotiating power than they did last year. As a result, sellers need to price and present their homes carefully.
Home prices remaining too high relative to buyer incomes is the biggest factor preventing more first-time buyers from entering the market.
According to Carl and Hayley Vandergoot of London-based REMAX Centre City Realty, the HST rebate has been a positive step but has mainly helped buyers who were already close to purchasing. The rebate is making new construction more competitive with resale properties and can reduce upfront financial pressure, but awareness remains relatively low and buyers often require additional education about the program.
Buyers are least willing to compromise on location. However, they have become more open to townhomes, semi-detached homes, and condominiums. Many are also looking outside their preferred areas and accepting longer commutes to stay within budget.
Historically high inventory levels mean buyers are less likely to rush decisions or overlook homes they consider overpriced, making pricing and presentation especially important.
According to the Vandergoots, the foreign buyer ban has had little impact on affordability or new construction development.
Frequently Asked Questions
How have home prices changed in London and the surrounding area?
The average residential sale price in London and the surrounding area decreased by 6.7 per cent between July 2025 and July 2026, declining from approximately $646,309 to $603,006.
How have sales and new listings changed?
The number of sales decreased by 4.9 per cent, from 721 to 686. The number of new listings also decreased by 5.1 per cent, declining from 1,626 to 1,543.
What is expected for London-area home prices in 2026?
Average 2026 sale prices are expected to decline by approximately 2 per cent below 2025 levels.
What is expected for home sales in 2026?
The number of sales is projected to decline by about 1 per cent.
What type of market is London currently experiencing?
London and the surrounding area is currently a balanced market with higher inventory levels and significantly more choice for buyers. In July, the LSTAR region had approximately 4.9 months of inventory and 3,367 active listings.
How are buyers behaving in the current market?
Buyers are taking more time, are more selective and price-conscious, and have somewhat greater negotiating power than they did last year.
What is the biggest barrier for first-time buyers?
Home prices remaining too high relative to buyer incomes is the biggest factor preventing more first-time buyers from entering the market.
How is the HST rebate affecting the London housing market?
According to Carl and Hayley Vandergoot of London-based REMAX Centre City Realty, the HST rebate has been a positive step but has mainly helped buyers who were already close to purchasing. It is making new construction more competitive with resale properties and can reduce upfront financial pressure, although awareness remains relatively low.
What are buyers least willing to compromise on?
Buyers are least willing to compromise on location. However, they have become more open to townhomes, semi-detached homes and condominiums, as well as looking outside their preferred areas and accepting longer commutes to stay within budget.
Why are pricing and presentation so important right now?
Historically high inventory levels mean buyers are less likely to rush decisions or overlook homes they consider overpriced, making pricing and presentation especially important.
Has the foreign buyer ban affected affordability or new construction development?
According to Carl and Hayley Vandergoot, the foreign buyer ban has had little impact on affordability or new construction development.
