There are many opinions on where the London, Ontario, real estate market is heading. There are the pessimists and the optimists, the fearmongers, the “the sky is falling” crowd, and the “I don’t care” crowd!

I have included below a few facts (the truth) about the London and area market as of April 30. Briefly explain the facts and how to respond to them. Predictions are for those with nothing valid to say; hence, verbal diarrhea.

If you want to know where the London, Ontario, real estate market is heading and what you can do today to stay ahead of it, contact me.

Average home price

• North London: $724,739

• South London: $684,335

• East London: $514,004

• St. Thomas: $574,887

• Central Elgin: $641,445

• Strathroy-Caradoc: $682.149

April 2025

• Sales: 653, down 14.3% from 2024

• Dollar amount: $427 million, down 14.8%

• New listings: 1,523, down 10.1% 

• Active listings: 2,891, up 19.6%

• Average price: $654,147, down 0.5% 

• Months of Inventory: 4.4, up from 3.2

• Days on the market: 21, up from 16

Year-to-date 2025

• Sales: 2,107, down 19.2% from 2024

• Dollar amount: $1.3 billion, down 18.4%

• New listings: 5,190, up 1.5%

• Active listings: 2,417. up 22.5%

• Average price: $645,593, up 1.1%

• Months of inventory: 4.6, up from 3.0

• Days on Market: 24, up from 18

The table below displays April’s benchmark prices for all housing types within LSTAR’s jurisdiction and compares them with those recorded in the previous month and three months ago.

Meaning?

For Sellers:

• With 2,891 properties for sale, buyers have choices. Most can read, listen to, or watch the news and feel they have an advantage in the price they are willing to pay.

• It behooves a home seller to understand that other homes compete with yours. You may feel your place is a castle, but buyers won’t.

• Buyers know prices. They view 6-10 homes, price, condition, and location matter.

• There are buyers out there; attract the right buyer. How? My home seller guide has quite a few tips and ideas.

For Buyers:

• Know what is available and what you can expect within your budget.

• Fully understand that over 60% of homes listed for sale are priced right, and the only loser in lowballing a seller is you.

• Yes, there will be sellers who must sell, but they are in the minority.

• Remember, you are buying a home, a place you can come home to and live in; real estate property is not a commodity. A few home buyer ideas in this market.

Who decides the market? Why? When? Understanding the London, Ontario real estate market is quite simple!

You can study all the statistics you want, gaze into crystal balls, or get advice from a meteorologist(weatherperson), a Realtor, or a Mortgage Broker, your relatives or co-workers.

In Hyman Minsky’s ‘Financial Instability Hypothesis,’ here goes:

• When an economy is stable, people get optimistic

• When people get optimistic, they go into debt

• When they go into debt, the economy becomes unstable.

Since Adam and Eve wanted more than an apple and bought their first home, history repeats itself—maybe not history, but people do.

Those who say they can time the market walk away. Is the Spring, Summer, Fall or Winter the best time to buy or sell a home? The best time is when you want, not have to!

There are outliers to this hypothesis of understanding the London, Ontario, real estate market.

• Being transferred between cities

• Marital challenges

• Death

• Need to Sell

• Don’t need a mortgage

• A need to impress someone

• Ignoring reality

• Wanting to downsize

Beware of Real Estate Experts

Full Disclosure:

• I am a Realtor

• I am classified as a Senior

• There are some things I know

• There are a lot of things I do not know

• I am right-handed

As you can see, I’m normal, aside from being a Realtor, because I keep my perspective on the London, Ontario real estate market in line with reality.

I have experienced all the markets in Southwestern Ontario, lived through them, and survived them—as did my clients! That is not to say that the market eye-opener the COVID debacle created will recur; not reacting and responding instead is more progressive than harmful!

A house or a condo is brick and mortar, a home is you, your comfort zone, your reward at the end of a day to come home to!

I started writing this blog post about real estate experts, but it kept getting longer and longer. It was about all the so-called experts, gurus, economists, relatives, hairdressers, etc.

Instead, I have enclosed some quotes that may help you distinguish between an expert and someone who talks like one!

• Mark Twain said kids provide the most interesting information because they tell all they know and then stop. Adults lose this skill and go on babbling!

• “The wise in all ages said the same thing, and the fools, who at all times form the immense majority, have in their way, too, acted alike, and done just the opposite!” Arthur Schopenhauer

• “Focus is the art of knowing what to ignore”. James Clear

• Using words to plead your case is risky business. Words put you on the defensive. If you must explain yourself, your power is already in question.” Robert Greene

• ‘If someone we know took traffic signals personally, we would judge them insane!” Ryan Holiday

• “A wealth of information creates a poverty of attention.” Herbert Simon

• “When two people believe opposite things, chances are that one of them is wrong.” Ray Dalio

Don’t get me wrong, there are experts in many fields; if I need heart surgery, I go to a heart surgeon, but I don’t ask her for real estate advice. My barber knows more about hair than I do. I don’t ask him about real estate advice or even listen.

I end with my two favourite sayings about real estate experts:

• “A rational person (realist) never leaves their interests at the mercy of any one person.” Ayn Rand

• “Big hat, no cattle!”

Everyone has an opinion about the real estate market in London, Ontario. There are the so-called gurus, economists, real estate appraisers, mortgage providers, Realtors, your dry cleaners, Uncle Bob, and the ever-present ‘they’!

How can you accurately tell what the real estate market in London, Ontario, is like now?

Most people think the price someone is selling or asking is an indicator; unfortunately, it’s not the best way to risk your hard-earned money! Or on interest rates or a time of the year.

Here are two indicators that correctly show the real estate market’s current state, not its future or potential.

Months of Inventory:

Months of Inventory quantifies the relationship between supply and demand. It is calculated by dividing the number of active home listings at the end of each month by the total number of home sales completed that month.

For example, if 100 active listings are available and 10 homes sold in the most recent month. Buyers can choose from approximately ten months of housing inventory. A healthy, balanced market will have 5 to 7 months of real estate inventory. Less than five months is a seller’s market, and more than five is a buyer’s market.

As of April 3, 2025, London, Ontario, and the area had 4.8 months of inventory (houses and condos for sale).

Absorption Rate:

The absorption rate reflects the balance between supply and demand. Divide the number of homes sold in a month by the number on the market. You will have a percentage that determines how quickly homes sell. An absorption rate above 20% indicates a seller’s market. An absorption rate below 15% is a buyer’s market.

As of April 9, 2025, our London St. Thomas Association of Realtors (LSTAR) reported 2066 active listings. So, take 508 homes sold divided by 2066 and get an absorption rate of 25%, a buyers’ market.

The facts and only the facts.

We, humans, tend to make choices emotionally!

Getting back to who you believe, I end this blog with a Mark Twain quote. “The difference between fiction and reality is that we expect fiction to make sense!”

Note: Caveats:

Absorption rates and inventory rates are practical measurements of the London, Ontario, real estate market, but practicality is useless when the observing eye knows more than the perceiving eye!

Example 1

“Ty, if a place ever comes up on _________________ street, let us know.” I did. The house was immaculate and priced $127,000 higher than any recent sale in the neighbourhood. We put in an offer, and two others did as well. Regardless, my client got it, and we paid over the asking price. It was ideal for their lifestyle and comfort zone.

We listed their home in an area with four comparable properties, with a $76,000 price difference among them. My client’s home sold in five days for full price.

Now, I could write that my skills and experience made it happen, but that would be b.s. My clients knew what they wanted, did not care about the market or what it would be, and acted with conviction. I was along for the ride!

Example 2

Three townhouses in an enclave of townhouses are almost identical in size, quality, and layout, and they have three prices: $590,000, $625,000, and $665,000. Guess which one sold? Guess which two are still on the market?

My Point?

Regardless of the market, everything will sell. It all comes down to perception and reality; eventually, one will rule!

This article covers the historical London, Ontario, real estate market conditions for the month listed. For current market insights, updated stats, or expert guidance, contact me for a personalized analysis.

Six months of inventory is a buyer’s market, three months or less is a seller’s market, and London and the area have 4.5 months of inventory; predicting the market for the next few months is as foolish as trying to predict someone’s mood over the next few months.

The recent surge in the residential London, Ontario real estate market affects buyers and sellers differently. With more homes for sale, buyers have more choices, but the November market was a contradiction to that, with prices up, meaning home sellers must price their homes to today’s market and not two years ago’s.

In November, the average sale price in the real estate market was $640,198, reflecting a 5.9% increase compared to the same month last year. This rise in prices highlights the ongoing demand and value in the market. Sales activity also saw a significant boost, with 614 transactions, marking a 35.5% increase year-over-year. New listings saw a significant rise of 10.8% year-to-date, providing more options for buyers.

The table below displays November average prices and MLS® HPI Benchmark Prices in LSTAR’s main regions supplied by the Canadian Real Estate Association (CREA).

The HPI benchmark price reflects the value of a “typical home” as assigned by buyers in a particular area based on various housing attributes. In contrast, the average sales price is calculated by adding all the sale prices for homes sold and dividing that total by the number of homes sold. The HPI benchmark price is helpful to gauge trends over time since averages may fluctuate by changes in the mix of sales activity from one month to the next.

The following table displays November benchmark prices for all housing types within LSTAR’s jurisdiction and compares them with those recorded in the previous month and three months ago.

The real estate market in November showed several positive trends across different property types. The composite benchmark price reached $612,100, a steady 0.6% increase.

• Single-family homes saw a notable rise to $663,100, up by 1.2%, while one-storey homes increased by 1.9% to $595,400.

• Two-storey homes also experienced growth, with prices climbing by 0.8% to $718,300.

• Townhouses maintained stability with a 1.0% increase, reaching $492,200.

• At $373,700, the apartment market was down a bit.

The chart below shows the most recent HPI benchmark prices across Canada.

London and St. Thomas continue to offer exceptional value in the Canadian real estate market. With a benchmark price of $612,100, our region remains one of the most affordable major centers.