London Housing Market Report
- Average home prices in London, Ontario, have increased by 4.6% over the past month to $646,155 for March 2024, which is 1.1% lower than in March 2023.
- The benchmark price of a home in London-St. Thomas for March 2024 was $602,700, 1.6% higher than last March and 2.6% higher than last month.
- Single-family average price decreased by 1.3% year-over-year to $708k.
- Townhouse average price increased by 4.4% year-over-year to $531k.
- Apartment average price increased by 3.9% year-over-year to $404k.
- April 20, 2024 Update: Today’s Lowest mortgage rates in London is 4.69% for 5-Year Fixed
London-St. Thomas Housing Market Overview
Home Prices
In March 2024, the average home price in London-St. Thomas’ housing market increased by 4.6% on a month-on-month basis, bringing the March 2024 average home price to $646,155. However, despite the monthly increase, the average home price decreased by 1.1% year-over-year. The average home price has increased only by 1.5% compared to three years ago but is 62% higher than five years ago. This means that home prices in London-St. Thomas increased significantly between March 2019 and March 2021. The average price has increased by 156% over the past decade.
Average house prices in London-St. Thomas peaked two years ago in February 2022 after a steep climb during 2021. However, the average price fell by nearly 30% by the end of that year. The average home price has slightly recovered since then and is about 22% below the peak now.
The median price in the region was $601,000 in March 2024, which is a 0.2% increase compared to last year.
Regional Comparison
Looking specifically at the City of London, Ontario, for March 2024, the average selling price of a home in London was $632,971, an annual increase of 1.8%. The median home price for London, Ontario, was $589,500, showing a 1.6% increase in a year. A total of 458 homes were sold in the City of London, Ontario, in March 2024, 6.9% less than last March.
St. Thomas saw an average home price of $572,837 during March 2024, which marks a 5.1% decline year-over-year. The median price for St. Thomas was $560,000, a decrease of 5.5% from last March. There were 41 homes sold in St. Thomas in March 2024, a notable 47.4% lower than last year.
Property Types
Breaking down the London and St. Thomas real estate market into property categories, 449 single-family homes were sold in March 2024, along with 103 townhouses and 63 apartments.
- The median selling price of a single-family home in the London and St. Thomas area was $665,000 for March 2024, increasing by 3% year-over-year and 1.6% month-over-month.
- The median selling price of townhouses in London-St. Thomas was $529,900, up by 2.4% year-over-year and by 3.3% month-over-month.
- Apartments had a median selling price of $360,000 in March 2024, up 2.1% from last year and by 6.2% from last month.
Sales and New Listings
London and St. Thomas had 636 sales in the month, 7.2% fewer sales than March 2023 and a 7.1% increase from the previous month. On the other hand, 1,233 new listings came onto the market in March 2024, 11.8% more than the new listings in March 2023 and 20.4% 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 March 2024 was 52%. 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 98.9% for March 2024, indicating that houses are selling about 1.1% 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 March 2024 was 2.9 months in March 2024, significantly more than the 2 months in March 2023 and slightly more than the 2.7 months of inventory at the end of last month.
Reasoning
During the pandemic, London-St. Thomas attracted several buyers, including many who moved out of Toronto in pursuance of more spacious homes that were relatively affordable. The region experienced immense growth at the time, and average house prices peaked two years ago in February 2022. In fact, the average home price increased by 34% from February 2021 to February 2022. However, the demand sharply fell in London-St. Thomas market as the mortgage rates rose and because many people started returning to offices in Toronto, causing home prices to tumble.
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.
The mortgage rate forecast suggests that the BoC may start cutting its policy rates by the second half of 2024; however, we will unlikely see mortgage rates drop to the 2020-21 levels again. The sales in the region are slower compared to this time last year, and if the trend continues, home prices might tumble again.
Comparison
Even though London home prices have seen considerable gain over the past five years (62% 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 March 2024
Average Sold Price and MLS HPI Benchmark Price
Transactions and New Listings
Market Overview for Detached Homes in March 2024
Average Sold Price
New Listings
Market Overview for Townhouses in March 2024
Average Sold Price
New Listings
Market Overview for Condo Apartments in March 2024
Average Sold Price
New Listings
London-St.Thomas Breakdown by Region for March 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.