02/09/2026
London, Ontario Real Estate Market Report — January 2026
Overview
The London, Ontario real estate market began 2026 on a more stable footing compared to the volatility seen in 2022–2024. After several years of correction and adjustment following the pandemic-era boom, the local market has entered a phase characterized by balanced conditions, moderate price growth, and improved buyer confidence.
January 2026 data reflects a measured start to the year, with signs that both sellers and buyers are re-engaging as interest rates ease and inventory builds back toward more typical levels.
Market Dynamics in Focus
1. Interest Rate Easing Driving Renewed Activity
Following the Bank of Canada’s gradual rate reductions through late 2025, fixed mortgage rates dipped below 5% for many insured borrowers in early 2026. This has Unlocked some pent-up demand, especially among first-time and move-up buyers who had been sidelined during the peak rate environment of 2023–2024.
2. Inventory Recovery Balancing the Market
After years of constrained supply, new listings have increased, allowing for a more balanced market environment. While buyers now have more options, the improved stability has also made sellers more confident in listing properties that were previously withheld.
3. Detached Homes Regain Stability
The single-detached segment—which saw sharper price declines mid-decade—has stabilized near the $650,000 benchmark. Affordability relative to major metros (especially the Greater Toronto Area) continues to draw relocating buyers from outside the region.
4. Condominiums and Townhomes Gaining Popularity
Condo and townhome segments recorded stronger year-over-year price gains (~4–5%), supported by affordability and new construction near the downtown core, Fanshawe Park Road, and South London neighborhoods. Investors are returning to this segment due to stable rental demand driven by Western University and Fanshawe College populations.
5. Rental Market Tightness Supporting Investment Demand
Rental vacancy rates remain below 2%, with average rents up roughly 6% year-over-year. This continues to make real estate investment in London relatively attractive, especially for those seeking long-term equity growth and cash flow stability.
Neighbourhood Highlights
Area Market Character Typical Price Range Key Trends
North London (e.g., Masonville, Sunningdale) Family-oriented, high-demand $750K–$1.1M Steady activity, strong school demand
South London (e.g., Summerside, White Oaks) Entry-level options $450K–$650K Attracting first-time buyers
Downtown/Core Urban condos, mixed-use growth $350K–$600K Increasing investor interest
Westmount / Byron Mature, established $600K–$900K Balanced sales, upgrading families
East London Affordable and transitional $400K–$600K Younger buyers entering the market
Outlook for 2026
Looking ahead, the London market is expected to remain stable to moderately positive through 2026, with price growth in the 3–5% range projected for most property types. Factors supporting this include:
Continued population growth through in-migration and students
Gradual rate normalization boosting affordability
Ongoing infrastructure investment (e.g., rapid transit expansion, commercial redevelopment in downtown London)
A healthy balance between buyer demand and new listings
Risks to watch: If inflation reaccelerates or lending policy tightens, growth could flatten mid-year. However, London’s relative affordability compared to Toronto or Kitchener–Waterloo makes it well positioned for sustained mid-term strength.
Professional Insight
Overall, January 2026 marks the start of a steady, confidence-building year for London’s real estate market. Sellers benefit from growing buyer momentum, while buyers enjoy more negotiating room than in the previous boom cycle. For investors and move-up homeowners alike, London continues to represent a balanced and promising mid-sized market in Ontario.
Want more info? Call me! ☎️
Nicole Doey
Sales Representative
Keller Williams Lifestyles Realty
Cell:519-709-8535
http://doeyhaveadeal.ca
