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London Housing Market | January 2026

Updated

This page has been updated with data released in February 2026 for the January 2026 period.

  • Average home price in London-St. Thomas: $624,550 (2.3% year-over-year decrease)
  • Benchmark home price: $558,000 (8.6% year-over-year decrease)
  • Median home price: $585,000 (0.9% year-over-year increase)
  • Total sales: 341 (7.8% year-over-year decrease)
  • New listings: 1,060
  • Active listings: 2,257
  • Lowest mortgage rate in London

Average home price by property type in London

These are the average home prices by property type in London-St. Thomas, updated with housing market data released February 2026 for the January 2026 period.

Home Type Home Price Year-over-Year Change
All Home Types $624,550 -2.3%
Detached Home $679,206 -3.7%
Townhouse $484,536 -3.9%
Condominium $313,246 -10.1%

London market metrics

Key market indicators for London-St. Thomas as of January 2026:

Metric Value Year-over-Year Change
Total Sales 341 -7.8%
New Listings 1,060 N/A
Active Listings 2,257 N/A
Months of Supply 6.6 N/A
Sales-to-New-Listings Ratio 32% N/A
Sales-to-List Price Ratio 96.5% N/A
Median Days on Market 47 N/A

With 6.6 months of supply and a sales-to-new-listings ratio of just 32%, London is firmly in buyer’s market territory. Homes are selling for an average of 3.5% below asking price, giving buyers significant negotiating power.

How much income would it take to afford a home in London?

The income it would take to purchase a home in London varies based on the home type. This table shows how much household income it would take to afford a home based on January 2026 home prices.

Home Type Home Price Mortgage Income Required
All Home Types $624,550 $499,640 $138,474
Detached Home $679,206 $543,365 $148,870
Townhouse $484,536 $387,629 $111,770
Condominium $313,246 $250,597 $79,042

To purchase the average detached home in London, a household would need an income of approximately $148,870 — well below the roughly $215,828 required in Toronto and competitive with many other mid-sized Ontario cities.

The income to afford calculation uses the following inputs:

  • Down payment of 20% to avoid mortgage default insurance
  • Mortgage rate of 4.04%
  • Amortization period of 25 years
  • Gross debt service (GDS) ratio of 32%
  • Property tax of $354 per month
  • Heating costs of $150 per month

Prolonged price correction

London’s housing market has been one of the most affected by the post-pandemic correction in Ontario. The average home price peaked at $825,221 in February 2022 and has since fallen over 20%, making London a bear market for 34 of the last 41 months. The benchmark price has declined 8.6% year-over-year, the steepest among major Ontario markets outside the Greater Golden Horseshoe.

Buyer’s market conditions

With 6.6 months of inventory and a sales-to-new-listings ratio of 32%, London firmly favours buyers. Homes are selling for 3.5% below asking price on average, and properties sit on the market for a median of 47 days. This gives purchasers leverage in negotiations, particularly in the condo and townhouse segments where price declines have been most pronounced.

Economic diversification

London’s economy is anchored by healthcare (London Health Sciences Centre is a major employer), education (Western University and Fanshawe College), insurance, manufacturing, and a growing technology sector. This diversified base provides some stability to the housing market, though London’s employment growth has not been as robust as in the Waterloo Region or Ottawa.

GTA spillover continues

Despite the market correction, London continues to attract buyers from the Greater Toronto Area seeking more affordable housing. The roughly 2-hour drive to Toronto, combined with prices approximately 40% below the GTA average, makes London attractive for remote workers and retirees in particular.

Notable areas in London

  • Old North / Masonville — Established neighbourhoods near Western University with tree-lined streets and mature homes. Detached homes range from $500,000 to $900,000.
  • Byron / Westmount — Popular family-friendly areas in the southwest with a mix of housing types. Detached homes $450,000–$750,000.
  • Wortley Village / Old South — Charming walkable neighbourhood with heritage homes, independent shops, and restaurants. Prices range $450,000–$800,000.
  • Kilworth / Komoka — Rural-suburban communities west of the city offering larger lots and newer homes. Detached homes $500,000–$800,000.
  • Downtown London — Undergoing revitalization with new residential developments. Condos range from $200,000 to $400,000.
  • Hyde Park — Newer suburban development in the northwest with a range of housing options. Detached homes $500,000–$750,000.

Affordability comparison: London vs. other Ontario markets

City Average Home Price Income Required
Toronto (GTA) $1,008,968 $215,828
Hamilton $734,639 $163,356
Waterloo Region $753,316 $163,611
Ottawa $641,436 $142,484
London $624,550 $138,474

London offers some of the most affordable housing among major Ontario cities. Paired with its buyer’s market conditions, the city presents strong opportunities for first-time buyers and those looking to maximize their purchasing power compared to the GTA.

Ontario land transfer tax in London

Buyers in London pay only the Ontario provincial land transfer tax — there is no additional municipal transfer tax (unlike Toronto).

Ontario Provincial Land Transfer Tax:

Purchase Price Bracket Rate
First $55,000 0.5%
$55,001 to $250,000 1.0%
$250,001 to $400,000 1.5%
$400,001 to $2,000,000 2.0%
Over $2,000,000 2.5%

On a London home purchased at the average price of $624,550, the total land transfer tax would be approximately $8,291. First-time home buyers in Ontario receive a rebate of up to $4,000 on the provincial LTT.

Use our land transfer tax calculator to estimate the exact amount you would owe.

If you are buying a home in the London area, these calculators can help you plan:

More housing market reports

Data Sources

The housing market data in this report is sourced from:

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