London Housing Market Report
- Average home prices in London, Ontario have fallen 10% in the past month, but have still risen by 7% over the past year to $686,287.
- Average home prices in London, Ontario have fallen 17% since the peak of the market 4 months ago.
- Fresh supply coming to the market and reduced demand from home buyers has been putting downward pressure on London home prices.
Just like other major housing markets in Ontario, London’s housing market saw a slight cooling off in prices during the month of June 2022. This continues the downward trend in prices seen over recent months. The average home price in London and St. Thomas was $686,287 in June 2022 for a 7% increase compared to last year. That’s a considerable 10% drop from last month’s average price of $762,397 in May 2021.
While London home prices saw a steep decline this month, this drop-off in prices has been seen since prices peaked in February 2022. Over the past four months, prices have gradually fallen by 17%. This has shaved close to $140,000 off the average price of a home in London and St. Thomas and is a clear sign of receding home prices after experiencing a 34% year-over-year price gain during the month of February 2022.
Looking specifically at the City of London, Ontario for the month of June 2022, the average sold price of a home in London was $688,644, which is an annual increase of 11%. It’s also a decrease of 16% compared to the peak in prices seen in February 2022. Compared to June 2017, the average sold price in St. Thomas has increased by 101%. This means that home prices in London have more than doubled in just five years.
Other areas within the London and St. Thomas housing market performed relatively poorly compared to London. St. Thomas saw an average home price of $576,680 during the month of June 2022, which marks an 8% year-over-year increase. Strathroy-Caradoc saw prices increase by 3% year-over-year to $657,051.
Middlesex and Elgin both saw home prices decrease on an annual basis. Middlesex's average price of $887,550 is a 3% annual increase, while Elgin's average price of $538,745 is a 17% annual decrease. However, this sharp change can be attributable to the low volume of home sales in Middlesex and Elgin, which numbered just 26 and 20 home sales respectively during the month of June. This can introduce distortions to the average home selling price of an area.
Breaking down the London and St. Thomas real estate market into property categories, 493 single-family homes were sold in June 2022, representing a decrease of 45% year-over-year. The average sold price of a single-family home in London and St. Thomas was $736,158 for June 2022, which is a 7% 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 $583,321, up 11% year-over-year. Meanwhile, the average sold price of apartments for June 2022 was $413,576, up 7% from last year.
London and St. Thomas had 663 sales in June 2022, a 44.5% year-over-year decrease from June 2021. On the other hand, 1,727 new listings came onto the market in June 2022, which is 17% more than the number of new listings brought to the market in June 2021. The sales to new listings ratio for London and St. Thomas is now at 38%, a steep drop from the 67.9% SNLR seen in March 2022 and the 79.6% ratio in February 2022. An SNLR below 40% means that the housing market is currently in a buyer’s market.
Meanwhile, the sale-to-list price ratio for London-St. Thomas has increased to 101.4% for June 2022. The sale-to-list price ratio measures the average sale price of a home compared to the average listing price of a home. With a sale-to-list price ratio of 101.4%, this means that the average home in London and St. Thomas sold for 1.4% over its listing price in June 2022.
In comparison, the sale-to-list price ratio was 120.3% in March 2022 and 110% last year in June 2021. Months of inventory have also quadrupled year over year from 0.7 months in June 2021 to 2.8 months in June 2022. Fresh supply coming to the market and reduced demand from home buyers has been putting downward pressure on London home prices.
Even though London home prices have seen moderate 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.
Looking forward, rising interest rates will continue to suppress demand for housing. This may result in London home prices contracting even further over the next few months, especially as the cost of loans and mortgages increase with rising interest rates brought about by high inflation in Canada.
Home Prices in London
London Housing Market Statistics for All Property Types in June 2022
Average Sold Price and MLS HPI Benchmark Price
Total Transactions
Market Overview for Detached Homes in June 2022
Average Sold Price
New Listings
Market Overview for Townhouses in June 2022
Average Sold Price
New Listings
Market Overview for Condo Apartments in June 2022
Average Sold Price
New Listings
London-St.Thomas Breakdown by Region for June 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.
Property types
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.
Property Classes
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.