Summer is in full swing, and the Southwestern Ontario real estate market is showing a clear shift toward buyer-favourable conditions. Here’s what’s happening and what it means for buyers, sellers, and investors.
1. Prices Trending Downward
- Ontario-wide, the average home price fell to $804,700 in June, marking a 6.9% drop year-over-year nesto.ca.
- Southwestern Ontario, including major centres like London and Kitchener-Waterloo, has seen a 2.4% annual decline, landing at about $594,600 in May WOWA.
- Locally in London, average home prices dropped 0.9% month-over-month to $650,500, down 4.2% year-over-year; inventories now sit around 4.4 months’ supply—firmly in balanced market territory WOWA.
👉 Takeaway: Buyers can find more choices and negotiating leverage. Sellers should price competitively and present homes in top condition.
2. Inventory Continues to Climb
- Ontario active listings reached 78,605 in June, up 18% from last year katharineloucaidougroup.com+3WOWA+3YouTube+3Zolo+8nesto.ca+8Bode+8.
- London reported 3,294 active listings by mid-June—significantly higher than the five-year norm WOWA.
- Across Ontario, 4–4.6 months of inventory now points to a balanced buyer’s market CREA Statistics+4nesto.ca+4WOWA+4.
3. Regional Nuances
- Kitchener‑Waterloo: Prices down ~3.6% YoY; however, it’s still a tech growth hub True North Mortgage+10WOWA+10Bode+10.
- Guelph & Niagara: Experiencing sharper dips—Guelph down 2.5%, Niagara down 1.5% YoY Mortgage Professional.
- London: Balanced market with slight cooling—benchmarks around $580,700, off 6% YoY WOWA+2WOWA+2Bode+2.
4. Market Outlook & Mortgage Trends
- Sales-to-New-Listings Ratio across Southwestern Ontario hovers between 36–41%, signaling buyer strength WOWA+4WOWA+4nesto.ca+4.
- Mortgage snapshot: Ontario’s lowest 2-year fixed rate is ~3.99%—buoying buyer activity Mortgage Professional+3WOWA+3nesto.ca+3.
- Analysts expect further price moderation through H2 2025 in Ontario until demand rebounds TD EconomicsTrue North Mortgage.
🔍 5. What This Means for You
| Role | Insight | Actionable Tip |
|---|---|---|
| Buyers | More inventory + cooler prices = stronger leverage | Get pre-approved, act decisively |
| Sellers | Longer days on market; buyers cautious | Stage well, price right, and highlight uniqueness |
| Investors | Condos and townhouses down ~8% YoY | Explore value buys, especially in rental-friendly spots |
Bottom Line
✅ This summer’s market in Southwestern Ontario offers a window of opportunity for buyers and strategic positioning for sellers. With buyers gaining more choice and price negotiating power, it’s essential to engage the market armed with up‑to‑date insights, top-tier financing, and a trusted agent by your side.