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London Housing Market Report

WOWA Trusted and Transparent
Market Report Summary for May 2024
Updated June 6th, 2024
  • Average home prices in London, Ontario, have increased by 0.7% over the past month to $660,430 for May 2024, which is 3.2% lower than in May 2023.
  • The benchmark price of a home in London-St. Thomas for May 2024 was $607,100, 2% lower than last May and 0.7% higher than last month.
  • Single-family average price decreased by 4.5% year-over-year to $710k.
  • Townhouse average price decreased by 0.1% year-over-year to $541k.
  • Apartment average price decreased by 9.2% year-over-year to $399k.
  • June 23, 2024 Update: Today’s Lowest mortgage rates in London is 4.79% for 5-Year Fixed

London-St. Thomas Housing Market Overview

Data for May 2024
Avg. Sold Price:$660,430
All Property Types:$660,430
Detached:$709,565
Townhouse:$540,557
Condo Apartment:$399,444
Transactions (Buy/Sell):774
All Property Types:774
Detached:594
Townhouse:105
Condo Apartment:54
Best 5-Year Fixed Mortgage Rates in London
Mortgage Term:
Fixed
Variable

London-St. Thomas Housing Market: Price Movements for May 2024

Benchmark

Home Price

$607,100

+0.7%

1-Month Change

-2%

1-Year Change

Average

Home Price

$660,430

+0.7%

1-Month Change

-3.2%

1-Year Change

Median

Home Price

$622,600

+1.1%

1-Month Change

-2.7%

1-Year Change

Home Prices

London Market Condition
Balanced
This Month’s SNLR: 50%
An SNLR between 40% and 60% indicates a balanced market.

In May 2024, the average home price in London-St. Thomas’ housing market increased by 0.7% on a month-on-month basis, bringing the average home price to $660,430. However, despite the monthly increase, the average home price decreased by 3.2% year-over-year. The average home price has increased only by 3.6% compared to three years ago but is 60% higher than five years ago. This means that home prices in London-St. Thomas increased significantly between May 2019 and May 2021. The average price has risen by 153% over the past decade.

The median price in the region was $622,600 in May 2024, which is a 2.7% decrease compared to last year.

wahi map

Regional Comparison

Looking specifically at the City of London, Ontario, for May 2024, the median home price was $619,950, reflecting a 1.6% decline in a year. A total of 500 homes were sold in the City of London, Ontario, in May 2024, 18% less than last May.

St. Thomas saw a median price of $560,000 during May 2024, a decline of 2.2% from last May. There were 79 homes sold in St. Thomas in May 2024, 6% lower than last year.

Meanwhile, looking at other smaller regions in the market, Adelaide-Metcalfe had a median selling price of $525,000, Elgin had a median price of $690,000, Middlesex had a median price of $811,000, and Strathroy-Caradoc had a median price of $617,950.

Property Types

Breaking down the London and St. Thomas real estate market into property categories, 594 single-family homes were sold in May 2024, along with 105 townhouses and 54 apartments.

  • The median selling price of a single-family home in the London and St. Thomas area was $658,890 for May 2024, decreasing by 4% year-over-year and 0.7% month-over-month.
  • The median selling price of townhouses in London-St. Thomas was $536,821, down by 2% year-over-year and by up 4.6% month-over-month.
  • Apartments had a median selling price of $344,750 in May 2024, down by 10% from last year and by 4.2% from last month.

Sales and New Listings

London and St. Thomas had 774 sales in the month, 8.5% fewer sales than May 2023 and a 9% increase from the previous month. On the other hand, 1,563 new listings came onto the market in May 2024, 11.9% more than the new listings in May 2023 and 9.7% more than last month.

While sales activity dipped on a yearly basis, new listings grew in the same period, which has helped improve balance in the housing market.

The sales-to-new-listings ratio (SLNR) for London and St. Thomas in May 2024 was 50%, remaining unchanged from last month. 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.

Additional Ratios

The sale-to-list price ratio measures a home's average sale price compared to a home's average listing price. The sale-to-list price ratio for London-St. Thomas was 99% for May 2024, indicating that houses are selling about 1% below the listed price. In comparison, when home prices in London peaked in February 2022, the sale-to-list price ratio was 122.9%.

Months of inventory at the end of May 2024 was 3 months in May 2024, significantly more than the 1.8 months in May 2023.

Reasoning

During the pandemic, London-St. Thomas region experienced immense growth, and home prices climbed steeply until February 2022, with the average home price increasing by 34% from February 2021 to February 2022. However, demand sharply fell in the London-St. Thomas market as the mortgage rates rose.

The cost of loans and mortgages is now significantly higher than two years ago due to the Bank of Canada’s policy rate hikes to curb the high inflation in Canada. High mortgage rates have negatively impacted mortgage affordability, which has been the primary reason for home prices falling in the region.

In June 2024, the BoC announced its first rate cut since March 2020, and the mortgage rate forecast suggests at least one more rate cut this year; however, we will unlikely see mortgage rates drop to the 2020-21 levels again. The region is experiencing lower demand than this time last year, evident from the drop in sales, which has caused home prices to decline year over year.

Comparison

Even though London's home prices have seen considerable gains over the past five years (a 60% increase in average price), the 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 May 2024

Average Sold Price and MLS HPI Benchmark Price

Transactions and New Listings

Best 5-Year Fixed Mortgage Rates in London
Mortgage Term:
Fixed
Variable

Market Overview for Detached Homes in May 2024

Average Sold Price

New Listings

Market Overview for Townhouses in May 2024

Average Sold Price

New Listings

Market Overview for Condo Apartments in May 2024

Average Sold Price

New Listings

London-St.Thomas Breakdown by Region for May 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.

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.