Canadian Home Sales Hit 20-Year Low: What London Sellers Need to Know

The Numbers Tell a Complicated Story

Canadian home sales in May 2025 hit their lowest point in at least 20 years. Just 47,014 transactions closed nationally—down 5.1% from the same time last year. Meanwhile, the typical Canadian home price rose slightly to $667,700, marking four consecutive months of modest increases.

These seemingly contradictory signals—rising prices but falling sales—deserve a closer look, especially if you're considering selling your London home.

Why Prices Are Rising Despite Weak Sales

Here's the key insight: prices are holding up primarily because fewer sellers are listing, not because buyers are flooding back into the market. New listings dropped 7.9% in May. When supply contracts alongside demand, prices can stabilize or even inch upward—but that doesn't necessarily indicate a healthy, active market.

The sales-to-new-listings ratio sits at 46.4%, a level we haven't consistently seen since the early 1990s. For context, a balanced market typically shows a ratio between 45% and 65%. We're at the low end of that range, suggesting buyers still have meaningful negotiating power.

What This Means for London Sellers

In neighbourhoods across London—from the tree-lined streets of Old North to the family-friendly communities of Byron and Lambeth—sellers need to approach the market with realistic expectations and smart strategies.

Pricing matters more than ever. In a slower market, overpriced homes sit. And the longer a listing lingers, the more buyers wonder what's wrong with it. Working with a knowledgeable local REALTOR® to price your home correctly from day one is crucial.

Presentation is your competitive edge. When buyers have options and time to be selective, homes that show well stand out. This doesn't necessarily mean expensive renovations—sometimes it's as simple as decluttering, fresh paint, or strategic staging.

Timing requires thought. While spring traditionally brings more buyers, today's market rewards sellers who understand their specific neighbourhood dynamics. A well-priced home in Masonville near Western University may attract different buyer pools than a family home backing onto Springbank Park along Commissioners Road.

London's Local Dynamics

Our London market has its own rhythms that don't always mirror national trends perfectly. The presence of Western University and Fanshawe College creates consistent demand in certain pockets. Healthcare sector employment at London Health Sciences Centre provides economic stability. And our relative affordability compared to the GTA continues to attract buyers relocating from more expensive markets.

That said, we're not immune to broader trends. Elevated interest rates have impacted purchasing power across the country, and London buyers are just as rate-sensitive as anyone else.

Strategic Selling in Today's Market

If you're thinking about selling your home in Westmount, Oakridge, or anywhere else in London, now is the time for honest conversations about market conditions. The days of multiple offers on every listing have cooled. But well-prepared sellers with properly priced homes are still achieving successful sales.

The key is approaching the market with eyes wide open. Understanding that we're in a slower period allows you to plan accordingly—whether that means adjusting your timeline, investing in pre-sale improvements, or simply setting realistic price expectations.

Let's Talk Strategy

Navigating a shifting market requires local expertise and honest guidance. At Calford & Co. Real Estate Team, we believe in giving our clients the full picture—not just what they want to hear, but what they need to know to make informed decisions.

If you're considering selling your London home, connect with Nickey Calford for a no-pressure conversation about your options and what today's market means for your specific situation.