London Housing Market Report
- Average home prices in London, Ontario, have decreased by 3.5% over the past month to $605,785 for January 2024, which is 3.5% higher than in January 2023.
- The benchmark price of a home in London-St. Thomas for January 2024 was $573,300, 0.7% lower than last January.
- Single-family average price increased by 4% year-over-year to $661k.
- Townhouse average price decreased by 0.3% year-over-year to $504k.
- Apartment average price decreased by 10.5% year-over-year to $319k.
- February 24, 2024 Update: Today’s Lowest mortgage rates in London is 4.69% for 5-Year Fixed
London-St. Thomas Housing Market Overview
In January 2024, the average home price in London’s housing market decreased by 3.5% on a month-on-month basis. The average home price increased by 3.5% year-over-year, bringing the January 2024 average home price to $605,785. The region has experienced a 59% growth in average prices over the past five years, and average home prices have doubled in the last seven years.
Average house prices in London peaked in February 2022 but later fell by nearly 240k, or 30%, by the end of that year. The average home price has only slightly recovered since then and is about 27% below the peak now.
Looking specifically at the City of London, Ontario, for January 2024, the average selling price of a home in London was $603,011, an annual increase of 7.5%. The median home price for London, Ontario, was $575,000, showing an 8% hike in a year. A total of 307 homes were sold in the City of London, Ontario, in January 2024.
St. Thomas saw an average home price of $556,382 during January 2024, which marks a 4.3% growth year-over-year. The median price for St. Thomas was $574,500, an increase of 13.8% from last January. There were 50 homes sold in St. Thomas in January 2024.
Breaking down the London and St. Thomas real estate market into property categories, 329 single-family homes were sold in January 2024, along with 74 townhouses and 31 apartments.
- The median selling price of a single-family home in the London and St. Thomas area was $630,000 for January 2024, increasing by 4% year-over-year.
- The median selling price of townhouses in London-St. Thomas was $520,000, up by 9.5% year-over-year.
- Apartments had a median selling price of $310,000 in January 2024, down 1.9% from last year.
Sales and New Listings
London and St. Thomas had 439 sales in the month, 27.6% more sales than January 2023 and a 31% increase from the previous month. On the other hand, 873 new listings came onto the market in January 2024, 6.2% more than the new listings in January 2023 and 126% more than last month.
The sales-to-new-listings ratio (SLNR) for London and St. Thomas in January 2024 was 50%. An SLNR between 40% and 60% is usually indicative of the market conditions being balanced, meaning the market neither favours the sellers nor the buyers.
Meanwhile, the sale-to-list price ratio for London-St. Thomas was 97.2% for January 2024, indicating that houses are selling about 2.8% below the listed price. The sale-to-list price ratio measures a home's average sale price compared to a home's average listing price. In comparison, when home prices in London peaked in February 2022, the sale-to-list price ratio was 123%.
Months of inventory increased to 3.3 months in January 2024, slightly lower than the 3.7 months in January 2023 and much lower than 4.4 months of inventory at the end of last month.
The cost of loans and mortgages are now significantly higher than they were two years ago due to the Bank of Canada’s policy rate hikes as a measure to curb the high inflation in Canada. High mortgage rates have negatively impacted mortgage affordability, which has caused home sales and prices to decline in the London-St. Thomas region over the past year and a half.
At the beginning of 2023, mortgage rate forecasts suggested that the rates would start to decline by the end of the year. However, the inflation proved to be stickier, and we did not see any rate cuts in 2023. Now, the mortgage rate forecast for 2024 suggests that the BoC may start cutting its policy rates in the second quarter of 2024. It is unlikely that we will see mortgage rates drop to the 2020-21 levels again; however, sales activity in London’s housing market will likely increase again when the mortgage rates start to decline.
Even though London home prices have seen considerable gain over the past five years (59% increase in average price), homes in London’s housing market are still affordable compared to some other Canadian housing markets. Toronto’s housing market is a two-hour drive away, with average home sold prices over $1 million. Other housing markets in Ontario, such as the Brampton housing market and Mississauga housing market, also feature average home prices around the $1 million mark. Comparable Ontario cities to London include the real estate market in Hamilton and Ottawa’s relatively affordable housing market.
Home Prices in London
London-St. Thomas Area Housing Market Statistics for All Property Types in January 2024
Average Sold Price and MLS HPI Benchmark Price
Transactions and New Listings
Market Overview for Detached Homes in January 2024
Average Sold Price
Market Overview for Townhouses in January 2024
Average Sold Price
Market Overview for Condo Apartments in January 2024
Average Sold Price
London-St.Thomas Breakdown by Region for January 2024
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.
Leasehold: Leasehold describes the situation where different entities own the land and the structure built on the land. Owner of the buildings has leased the land and pay rent to their landlord while owning the building on the land.
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.