Are House Prices Expected to Rise in 2026?

The Canadian housing market has been full of twists and turns over the past few years. From rapid gains during the pandemic to cooling demand as interest rates climbed, both buyers and sellers are asking: where are house prices headed next — especially in 2026?

At Shrine Realty Brokerage Ltd. in London, Ontario, we’ve dug into the latest forecasts from RBC, CMHC, Scotiabank, and True North Mortgage to help you understand what’s coming — nationally, provincially, and right here in our local market.

The National Outlook

Most experts agree: 2026 will likely see a rebound in home prices following a modest decline in 2025.

True North Mortgage projects that the national average home price will dip 1.7% in 2025 but rise by 3% in 2026, reaching almost $698,000.
CMHC suggests prices could even hit new record highs by 2026, after stabilizing from 2025’s correction.
RBC’s August 2025 forecast points to weaker demand this year, but expects sales activity to recover in 2026, putting upward pressure on prices once again.

Ontario and British Columbia: A Different Story

While Alberta and Saskatchewan are positioned for stronger gains, Ontario and BC face a more cautious outlook.

RBC and Scotiabank both highlight that high inventory levels and stretched affordability could lead to smaller gains — or even slight declines — in Ontario’s major markets.
That said, these provinces also tend to rebound quickly when demand picks up, especially if the Bank of Canada cuts rates further in 2025.

What About London, Ontario?

Here in London, the market mirrors much of what we see province-wide:

Affordability is tighter than it was pre-pandemic, but London still offers more value compared to the GTA, which continues to attract buyers from Toronto and surrounding regions.
Inventory has increased, giving buyers more options in the short term. This could keep price growth modest in 2025.
However, supply constraints and migration trends are expected to support prices longer term. As demand recovers in 2026, London is well positioned to see modest but steady growth, rather than dramatic swings.

In short: don’t expect London to crash, but don’t expect a runaway boom either. Instead, we’re likely to see stability in 2025, followed by gradual price increases in 2026.

The Drivers Behind 2026 Growth

Supply Shortages: Canada simply isn’t building homes fast enough. Even with more listings on the market now, the long-term shortage will keep values supported.
Interest Rates: If the Bank of Canada continues cutting rates in 2025, mortgages become more affordable, fueling demand in 2026.
Economic Recovery: A stronger job market and wage growth will boost buyer confidence.
Demand Rebound: Buyers who “paused” during the high-rate years are expected to return, especially families and first-time buyers.

What This Means for You in London

For Buyers: 2025 may be your best opportunity to purchase before prices start climbing again.
For Sellers: If you can hold through 2025, 2026 could bring stronger conditions to maximize your sale.
For Investors: London’s relative affordability compared to Toronto and Vancouver makes it a smart long-term play, especially as more buyers look beyond the GTA.

Final Takeaway

So, are house prices expected to rise in 2026? 👉 Yes, most forecasts point to growth, but the size of that increase will vary by region.

For London, Ontario, the outlook suggests stability in the short term, followed by gradual appreciation in 2026 — supported by migration, affordability (relative to the GTA), and ongoing supply constraints.

At Shrine Realty Brokerage Ltd., we’re watching these trends closely. Whether you’re buying, selling, or investing, the key is timing your move with both market cycles and personal goals in mind.

📞 Thinking about your next step in London real estate? Contact our team today for expert advice backed by market research.