London Housing Market Report
- Average home prices in London, Ontario have risen by 30% over the past year to $823,954 for March 2022, a slight dip after months of relentless price growth.
London’s housing market saw a slight cooling off in prices during the month of March 2022 after a steamy run-up in prices over the past few months. The average home price in London and St. Thomas was $823,954 in March 2022, which is a 30% increase compared to last year. This means that the average home in London, Ontario has increased by $189,155 in one year. The growth in London home prices falls into line with other major housing markets in Ontario and the extraordinary price growth seen across the province.
London and St. Thomas had 1,049 sales in March 2022, a 19% year-over-year decrease from March 2021’s 1,296 sales. On the other hand, 1,544 new listings came onto the market in March 2022, which is 0.25% more than the 1,540 new listings seen in March 2021. The sales to new listings ratio for London and St. Thomas is now at 67.9%, a drop from the 79.6% ratio last month in February. That’s also a much needed drop from the 123.5% ratio seen in December 2021 when sales outpaced new listings.
Meanwhile, the sale-to-list price ratio for London-St. Thomas has increased to 120.3% for March 2022, a touch higher compared to the 115.1% sales-to-list price ratio back in March 2021. The sale-to-list price ratio measures the average sale price of a home compared to the average listing price of a home. With the sale-to-list price ratio now at 120.3%, this means that the average home in London and St. Thomas sold for 20.3% over its listing price in March 2022. Low supply and sustained demand from home buyers has been putting upward pressure on London home prices.
Looking specifically at the City of London, Ontario for the month of March 2022, the average sold price of a home in London was $807,540 for March 2022, which is an annual increase of 28%. It’s also a monthly decrease of 2% compared to February 2022’s average London home price of $823,842. Compared to March 2019, the average sold price in St. Thomas has increased by 101%. This means that home prices in London have more than doubled in just three years.
Looking at other areas within the London-St. Thomas housing market, Middlesex had the largest price growth over the past year. The average sold price of a home in Middlesex increased 52.4% year-over-year to $1,192,547 for March 2022. However, this sharp change is largely attributable to the low volume of home sales in Middlesex, which numbered at just 39 home sales during the month of March. This can introduce distortions to the average home selling price of an area. As a comparison, Middlesex had an average sold price of $930,913 in February 2022, which was only a 19% year-over-year increase.
Runner-up in terms of annual price growth is Strathroy-Caradoc, which had an average sold price of $860,138 for a 36% annual increase. St. Thomas had an average sold price of $728,860, up 29% year-over-year, while Elgin fell behind with an 18.6% year-over-year increase to $819,243 for March 2022.
Breaking down the London and St. Thomas real estate market into property categories, 756 single-family homes were sold in March 2022, representing a decrease of 20% year-over-year. The average sold price of a single-family home in London and St. Thomas was $894,306 for March 2022, which is a 28% year-over-year increase.
Condo townhouses were the best performing property type in terms of annual price percentage gains. The average sold price of condo townhouses in London-St. Thomas was $692,187, up 36% year-over-year. Meanwhile, the average sold price of apartments for March 2022 was $501,961, up 29% from last year.
Even though London home prices have had double-digit gains over the past year, homes in London’s housing market are still affordable when compared to other Canadian housing markets. Just a two-hour drive away is Toronto’s housing market, which has average home sold prices well over $1 million. Other cities in Ontario, such as Brampton and Mississauga, also feature average home prices over the $1 million mark. Comparable Ontario cities to London include the real estate market in Hamilton and Ottawa’s affordable housing market.
Home Prices in London
London Housing Market Statistics for All Property Types in March 2022
Average Sold Price and MLS HPI Benchmark Price
Market Overview for Detached Homes in March 2022
Average Sold Price
Market Overview for Townhouses in March 2022
Average Sold Price
Market Overview for Condo Apartments in March 2022
Average Sold Price
London-St.Thomas Breakdown by Region for March 2022
Glossary and Definitions
MLS® HPI: The MLS® Home Price Index (HPI) is an index by the Canadian Real Estate Association (CREA) that tracks the prices of homes in a neighborhood. It allows Canadians to quickly compare home prices across Canada and between periods of time without having to account for specific features of a property. Unlike market prices, which can fluctuate from month to month based on seasonal dynamics, the HPI provides a stable view tracks trends across a longer period of time. The HPI is reviewed every year in May to adjust for changes in the real estate marketplace.
MLS® HPI Benchmark Price: The MLS® Home Price Index (HPI) Benchmark Price is the HPI translated into a real-world price number.
Strata Insurance: Strata insurance is insurance used by a strata like a condominium to covers damages to common areas and assets and liability to the strata. It can also include fixtures built or installed as part of the original construction of each unit, even though these may not be common structures. The insurance can cover:
- Buildings and structures associated with the strata including common areas such as the roof, parking garages, driveways, gyms, pools, etc.
- Liability for any property damage or bodily injury suffered on strata property
- Any fixtures that are part of the "standard unit" or original construction of each unit
Strata insurance does not usually include personal items and appliances that are part of a condo unit. It also does not cover the damages made by individual unit owners, such as in the case of water damage caused by a unit owner. These are usually covered by personal condo insurance.
Detached home: A detached home is your standard single-family home. It is a residential building that stands alone and is separately titled or legally a single unit.
Semi-detached home: A semi-detached home is similar to a detached home, except it shares a wall with another home. This pair of homes must make up an independent building and each should be separately titled or legally two separate units. There can only be two homes in a semi-detached building.
Townhouses: A townhouse is the middle between a detached/semi-detached home and a condo apartment. Like detached and semi-detached homes, they are often single-family units that have their own land and may be attached to other units. However, like condo apartments, they typically have to pay co-ownership fees for maintenance and may share some common features with their neighbors.
Condo apartment: This category includes all apartments and condominiums. These are complexes of residential units with common areas such as hallways, parking lots, stairwells, etc. They can be low-rise, mid-rise, or high-rise buildings. Unlike townhouses, there are no parts of the lot (the land of the building) where access is reserved for only one owner or occupant. There can be privately owned units and spaces inside the building.
Plexes are multi-story buildings with two to four individual units, usually one on each floor. They are a mainstay in Montreal and other cities in Quebec. Each unit is usually individually accessible via an external entrance with higher floors connected by staircases.
Freeholds: A freehold is any property where the owner owns both the house and the land it is built on. Common freehold property types include: detached, semi-detached, some townhouses, and farmland.
Condominiums: A condominium or condo is any property where the owner owns the home (or unit) but shares ownership of the land and other improvements with a condominium corporation. Common condominium property types include condo apartments and some townhouses.
Housing Markets Across Canada
Data sourced from the LSTAR and the Canadian Real Estate Association (CREA). Any analysis or commentary is the opinion of the analysts at WOWA.ca and should not be construed as investment advice. Please consult a licensed real estate professional before making a real estate investment decision. The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA.