Elevate Housing Market Outlook 2026
Calm, Clear, Balanced
After several years of volatility, Canada’s housing market is entering a quieter, more deliberate phase — and London, Ontario, is well-positioned within that reset. Here is our full Elevate Housing Market Outlook 2026.
National forecasts heading into 2026 point to stabilizing prices, modest sales growth, and improving affordability, rather than a return to boom-and-bust conditions. TD Economics describes the outlook as a “gradual, modest recovery,” driven by easing interest rates, pent-up demand returning, and a steadier employment backdrop. Royal LePage echoes this sentiment, noting that “improved affordability and reduced competition are rebuilding market confidence among both buyers and sellers.”
At Elevate, this aligns closely with what we’re seeing locally. Buyer interest hasn’t disappeared; it’s become more intentional. Sellers are adjusting their expectations. The result is a market that feels calmer, more balanced, and easier to navigate than it has in years. However, it isn’t without frustrations. For sellers, there’s strong downward pressure on listing prices, and in some instances, the time it takes to sell is increasing. Pricing a home accurately has never been more important.
Are Ontario’s Trends Reflective Of London?
Much of the softness in Ontario’s pricing over the past year has been concentrated in large urban centres, particularly Toronto, where condo inventory, pre-construction slowdowns, and affordability pressures remain elevated. CREA forecasts that Ontario will be one of only two provinces to see average price declines in 2025, but expects a meaningful rebound in sales activity in 2026 as confidence returns.
London’s market structure is different. We are far less reliant on high-rise condo development and speculative pre-sales, and far more driven by end-user demand, low-rise housing, and established neighbourhoods.
From an Elevate perspective, this matters. London tends to move earlier into balance and avoid the sharper swings seen in larger metropolitan markets. That dynamic is showing up again as we head into 2026.
Pricing Expectations: Stability Over Surprises
Royal LePage forecasts national home prices to remain relatively flat in 2026, with modest gains in detached homes and continued downward pressure in the condo segment. CREA similarly expects average prices to rise by about 3% nationally in 2026, supported by improved affordability and renewed buyer participation.
For London, this suggests measured growth. Not market-wide growth in all sectors.
We’re already seeing this play out:
- Well-priced homes continue to sell
- Buyers are negotiating more confidently
- Over-pricing is punished more quickly than in prior years
- Homes purchased at the peak of the market are struggling to recoup the purchase price
In short, the current market rewards preparation and realism rather than speculation.
Local Confidence: Cautious, But Not Absent
Local sentiment data from LSTAR and Nanos Research adds important colour. Only 27% of London residents expect home values to rise in the next six months, the lowest reading since tracking began. That may sound pessimistic, but it reflects uncertainty, not disengagement.
At the same time:
- A majority of residents support affordability-focused policies such as 30-year amortizations for first-time buyers
- Over half of Londoners say they would be comfortable living in a factory-built home
- Most residents recognize the long-term economic benefits of major investments like the Volkswagen plant in nearby St. Thomas
As LSTAR notes, affordability remains a top concern.
Elevate Insight: This cautious confidence is constructive. Buyers are no longer rushing out of fear of missing out. Sellers are planning more carefully. That leads to better outcomes for both parties in the transaction.
In Summary: What To Expect
For buyers, 2026 offers something we haven’t seen in a while:
- More choice
- Less competition
- Greater negotiating power
- Clearer borrowing costs
For sellers, success will hinge on strategy:
- Proper pricing
- Strong presentation
- Understanding today’s buyer mindset
This is not a market where you “test the waters.” It’s a market where preparation pays off.
The Bottom Line
2026 is about normalization.
National forecasts from TD, Royal LePage, and CREA all point to a market that is stabilizing, not stalling. Local LSTAR data shows Londoners remain cautious yet engaged. From our perspective at Elevate, London’s fundamentals, employment, education, healthcare, and long-term population demand continue to support a steady, balanced housing market.
The reset is largely behind us. Now the focus shifts to making smart, well-timed decisions.
If you’re thinking about buying or selling in 2026, the most important question isn’t “What will the market do?” It’s “How do I position myself within it?”
Elevate Real Estate Group
Read More From Elevate Here: