The start of 2025 brings new opportunities—and challenges—for anyone dreaming of homeownership in London, Ontario. Whether you’re envisioning cozy evenings in your first home or looking to upsize, it’s natural to wonder: is now the right time to make your move? Let’s dive into the trends, numbers, and what they mean for you.
The Market Snapshot
Picture this: the London-St. Thomas’s housing market has been on a rollercoaster over the past few years. As of December 2024, the average home price sits at $636,942. That’s slightly down by 0.5% from the previous month but up 1.4% compared to the same time last year. If you’re feeling nostalgic for early 2022’s dizzying highs, don’t worry—you’re not alone. Prices are still about 23% below the market’s peak, offering a window of opportunity for savvy buyers.
But wait, there’s more. The median price—a critical number for gauging the market—hit $590,000 in December 2024. It’s been holding steady compared to last year but saw a modest 1.7% increase month-over-month. That’s market-speak for, “Things are levelling out,” which could be good news if you’re entering the game.
A Seller’s Market
Here’s the kicker: the sales-to-new-listings ratio (SNLR) was 78% in December, squarely in seller’s market territory. Translation? Homes are moving fast, and competition is fierce. Buyers need to act decisively, but don’t panic—there are still deals to be found if you do your homework and stay prepared.
What About 2025?
Looking ahead, the Canadian Real Estate Association (CREA) predicts a 6.2% bump in sales nationwide this year. That’s a sign of confidence returning to the market, but what does it mean for London? Expect gradual price increases as the year unfolds, fuelled by strong demand and limited supply.
However, affordability is still the elephant in the room. Despite cooling from those 2022 highs, housing costs are stretching wallets thin. The Bank of Canada’s potential interest rate cuts might ease mortgage payments, but they could also nudge prices higher, so it’s a mixed bag.
Is It Time to Buy?
Here’s the deal: the answer depends on your personal situation. Are you financially ready? Have you saved for a down payment? Do you have flexibility in your timeline? If the numbers work for you, this could be a golden moment to buy before prices climb higher.
For first-time buyers, consider exploring innovative financing options (like shared equity programs) to get your foot in the door. For those looking to upgrade or invest, keep an eye on emerging neighbourhoods and upcoming developments for hidden gems.
The Final Word
Buying a house is a big deal, and the London market in 2025 is shaping up to be an exciting, albeit challenging, arena. With a mix of stability, opportunity, and some hurdles to clear, now might be the perfect time—if you’re prepared.
Take your time, do your research, and enlist the help of trusted professionals. Whether this is your first home or your forever home, London has plenty to offer. So, is now the right time to buy? It might just be, but only you can decide.