What to Expect in London Ontario’s Real Estate Market in 2025

Key Trends and Insights for London, Ontario’s Real Estate Market in 2025

The real estate market in London, Ontario, is poised for significant changes in 2025. As the dust settles from years of rapid price growth, shifting interest rates, and evolving buyer preferences, the city remains a key hub for real estate activity in Southwestern Ontario. Understanding these key trends and insights is essential for buyers and sellers to make informed decisions in the coming year. This blog explores what to expect in London Ontario’s real estate market in 2025, supported by insights from industry experts, local data, and national forecasts.

Stabilizing Interest Rates and Housing Affordability

After a period of rising interest rates to combat inflation, 2025 is expected to bring relief to potential buyers. The Bank of Canada’s monetary policies will likely stabilize or slightly reduce rates by the year’s end, significantly impacting borrowing power. This change is expected to reignite buyer demand, particularly among first-time buyers previously sidelined by high borrowing costs.

Lower rates, however, do not guarantee affordability. While the monthly cost of owning a home may decrease, the demand surge could lead to upward pressure on prices, particularly in cities like London, which are known for their attractive housing options compared to major urban centers like Toronto.

Average Home Prices and Market Trends in London

London, Ontario, has experienced steady growth in home prices over the past several years. As of December 2024, the average home price was approximately $636,942, a modest increase from 2023. Consistent, moderate price appreciation is expected to continue into 2025. This stability is a welcome change after the sharp price hikes in earlier years, creating a more balanced market environment.

This means sellers can still achieve strong returns, while buyers are less likely to encounter the dramatic bidding wars that characterized the market during the pandemic years. Additionally, homes in desirable neighbourhoods like Byron, Wortley Village, and Hyde Park are expected to continue appreciating due to their amenities, schools, and overall appeal.

Rising Inventory Levels and Opportunities for Buyers

The London real estate market saw a 19.7% increase in new listings in 2024, a trend expected to persist in 2025. With more properties coming onto the market, buyers will have greater selection, reducing some of the competitive pressure seen in previous years.

This increase in inventory could mean a longer time on the market for sellers who don’t price their homes competitively or fail to stage their properties effectively. For buyers, however, it presents an excellent opportunity to find homes that meet their needs without the urgency of making rushed offers. This is particularly beneficial for families, retirees, and first-time buyers who prefer to take their time during decision-making.

Evolving Buyer Preferences in 2025

Buyers in 2025 are expected to prioritize homes that cater to sustainability, energy efficiency, and multi-generational living. Many prospective homeowners seek properties equipped with smart home features, solar panels, and other energy-efficient upgrades. Multi-generational homes and those with Accessory Dwelling Units (ADUs) are also in demand, reflecting the changing needs of families looking to share housing costs or accommodate aging relatives.

In London, Ontario, these trends are particularly evident in newer developments and established neighbourhoods that offer larger lots and flexible living spaces. Sellers who invest in these upgrades may see a significant return, as they appeal to the next wave of homebuyers.

The Role of Economic Growth in London’s Housing Market

London’s strong local economy continues to be a cornerstone of its housing market. The city is experiencing steady population growth, driven by migration from larger metropolitan areas, international immigration, and a thriving job market. This has created sustained demand for housing across all segments, from entry-level condos to luxury properties.

The city’s ongoing infrastructure projects and strong healthcare and education sectors further bolster its appeal. London remains an attractive market for investors, offering a combination of steady returns and future growth potential.

Key Advice for Buyers and Sellers in 2025

For Buyers:

• Be prepared to act quickly on competitively priced properties, as demand is expected to remain strong, particularly for energy-efficient and family-friendly homes.
• Use lower interest rates to expand your budget or negotiate favourable terms.
• Consider neighbourhoods with rising potential, such as those near new infrastructure projects or expanding schools.

For Sellers:

• Focus on enhancing your property’s appeal by incorporating energy-efficient upgrades and staging your home for modern buyers.
• Price your home competitively to ensure it stands out in a market with higher inventory levels.
• Work with a knowledgeable real estate team to market your property effectively and attract serious buyers.

Conclusion

The London, Ontario, real estate market in 2025 is shaping into a year of opportunity for buyers and sellers. Stabilizing interest rates, rising inventory levels, and evolving buyer preferences contribute to a balanced yet dynamic market. Whether you’re looking to buy your first home, sell an existing property, or invest in this growing city, staying informed about these trends is key to making the right decisions.

The Elevate Real Estate Group is here to guide you through every step of the process. With a deep understanding, a review of key trends and insights of the London market and a commitment to exceptional service, we’re ready to help you achieve your real estate goals in 2025.

Sources

• Canadian Real Estate Association (CREA) Quarterly Forecasts
• Maclean’s: Ten Housing Predictions for 2025
• Financial Post: Housing Market in 2025
• London St. Thomas Association of Realtors (LSTAR) Residential Market Activity Report

 

Why Choose Elevate Real Estate Group?

At Elevate Real Estate Group, we understand that buying a home is a major decision. That’s why having the right team by your side is so important. Our experienced realtors—Stewart Blair, Jeremy Odland, Brittany Wurfel, and Caitlyn Ford—bring unmatched expertise and dedication to every client.

Additionally, our in-depth knowledge of the London, Ontario market allows us to guide you confidently through every step of the process. From the initial consultation to the moment you receive your keys, we’re committed to making your journey smooth and stress-free.

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Elevated Excellence in Real Estate

When you ask our clients, you’ll hear time and time again how we stand out in a competitive market. Our unwavering focus on Ethical Behaviour, providing the Best Client Experience Possible, and maintaining a Commitment to Excellence sets us apart.

Unlike others in the industry, we do not chase awards, focus on sales volume, or rush through deals to move on to the next client. Instead, we care about Every Client, Every Deal, Every Time. Whether you’re a first-time buyer or a seasoned investor, you can trust us to deliver the care and respect you deserve.

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Get the Guide Today

Ready to start your home-buying journey? Download our Home Buyers Guide today and get practical tips and expert advice to make your dream home a reality.

Click here to access the guide.

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Contact Us

Do you have questions or need personalized advice? Call us at 519-933-6198. Let’s work together to find the perfect home for you!

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