London Housing Outlook for the Rest of 2026
A Gradual Recovery, Not a Sprint
Canada’s housing market is expected to regain momentum in 2026, but TD Economics is clear: this is not a rebound year, it’s a transition year. Their outlook points to a slow, uneven recovery, shaped by pent-up demand, cautious buyers, and an uncertain economic backdrop. Here is the Elevate take on the London housing outlook for the rest of 2026.
For London, Ontario, those national themes largely hold true, but with a few important local nuances that buyers and sellers should understand as we move through the remainder of the year.
Pent-Up Demand Is Real—But It’s Selective
TD expects sidelined demand to gradually re-enter the market in 2026, and we’re already seeing early signs of that locally. In London, demand remains strongest in:
- Move-in-ready single-family homes
- Well-located neighbourhoods such as North London, Old North, Byron, and family-oriented pockets of South London
- Homes priced realistically, rather than hopefully
Buyers are active but disciplined. The days of “test the market” pricing are largely behind us. Homes that reflect current market conditions are attracting interest; those that don’t are sitting.
This aligns with TD’s view that pent-up demand will support activity but not spark rapid price growth.
Interest Rates: Stability, Not Stimulus
TD expects interest rates to remain neutral through 2026, with the Bank of Canada likely to stay on the sidelines. That means buyers are no longer waiting for dramatic rate cuts, but they’re also not feeling pushed into rushed decisions.
In London, this has created a more deliberate market:
- Buyers are taking time with inspections and financing
- Conditional offers are common again
- Negotiations are more balanced than in recent boom cycles
For sellers, this reinforces the importance of preparation and pricing strategy. The market will reward quality and transparency, not shortcuts.
Ontario’s Broader Weakness Still Matters—But London Is More Resilient Than the GTA
TD identifies Ontario as the weakest provincial market overall, largely due to challenges in the Greater Toronto Area, particularly in the condo segment. London has been insulated from some of that volatility.
Unlike the GTA, London’s market is:
- Less investor-driven
- More end-user focused
- Supported by healthcare, education, manufacturing, and regional employment hubs
That said, London is not immune. Affordability remains stretched for first-time buyers, and investor activity, especially in small condos and entry-level rentals, has cooled noticeably. This has added supply in some segments, keeping price growth contained.
Inventory Will Continue to Shape the Market
TD’s outlook points to rising supply in several Ontario markets, and locally, we expect inventory to remain elevated compared to pre-pandemic norms, even as demand slowly improves.
What this means for the rest of 2026:
- Buyers will continue to have a choice, especially in townhomes and condos
- Sellers will need to compete on condition, presentation, and value
- Price growth, where it occurs, will be neighbourhood-specific, not market-wide
London’s detached housing market is likely to remain the most resilient, while condos and investor-style properties may continue to face pressure.
Population Growth and Employment Remain Key Wildcards
TD highlights the slowing national population growth as a risk to housing demand. For London, migration trends still matter—particularly students, healthcare professionals, and families relocating from larger urban centres.
If employment remains stable locally, London is well-positioned to benefit from regional spillover demand, even as national growth slows. However, any weakening in job creation would quickly temper buyer confidence.
What This Means for Buyers and Sellers in London
TD’s message is clear: 2026 is about gradual improvement, not dramatic recovery. Locally, that translates into a market where:
- Buyers have leverage, but not unlimited bargaining power
- Sellers can succeed, but only with the right strategy
- Timing, preparation, and local expertise matter more than ever
At Elevate Real Estate Group, we’re seeing a market that rewards informed decisions, not speculation. Whether you’re planning to buy, sell, or simply understand your options, the rest of 2026 will favour those who approach the market thoughtfully.
Elevate Real Estate Group
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