London, Ontario Real Estate Market Update – March 2026
London Ontario's real estate market in March 2026 is showing signs of stabilization after a prolonged period of correction. According to LSTAR (London and St. Thomas Association of REALTORS®), benchmark prices have settled near $621,400 for residential properties — down modestly year-over-year but with a notable uptick in showing activity and new listing absorption compared to January and February 2026. For buyers and sellers who've been waiting on the sidelines, this month's data offers genuine signals worth understanding.
Ryan Hodge walks through the London Ontario market numbers for March 2026 — prices, inventory, and what it means for buyers and sellers right now.
London Ontario Home Prices in March 2026
According to LSTAR's MLS® Home Price Index, the benchmark price for all residential property types in London-St. Thomas reached approximately $621,400 in March 2026. This represents a year-over-year decline of roughly 2.3% from March 2025's figure of approximately $635,900, and a modest sequential improvement of approximately 1.1% from February 2026 — the second consecutive month of marginal price recovery.
| Property Type | Benchmark Price (Mar 2026) | YoY Change | MoM Change |
|---|---|---|---|
| All Residential | $621,400 | ▼ 2.3% | ▲ 1.1% |
| Single-Family Detached | $695,200 | ▼ 1.8% | ▲ 1.4% |
| Townhouse / Row | $492,600 | ▼ 3.1% | → 0.2% |
| Apartment / Condo | $378,000 | ▼ 4.2% | ▼ 0.6% |
| Semi-Detached | $558,800 | ▼ 2.7% | ▲ 0.9% |
The detached segment continues to show the most resilience. Demand for freehold properties with yard space remains structurally strong — particularly in the $650,000–$800,000 range — driven by families and buyers relocating from the Greater Toronto Area. The condominium segment faces the most pressure, partly due to elevated inventory of new builds completing construction and a softer rental market in the purpose-built condo tier.
Sales Activity and Inventory Levels
LSTAR reported approximately 695 residential sales through the London-St. Thomas MLS® System in March 2026. While this sits approximately 8% below the 10-year seasonal average for March, it represents a meaningful 18% improvement over February 2026's transaction volume — consistent with the typical spring market acceleration that London reliably experiences.
New listings in March 2026 reached approximately 1,380 units, according to LSTAR. With roughly 695 sales against 1,380 new listings, the sales-to-new-listings ratio (SNLR) sits near 50% — firmly in balanced market territory (CREA defines a seller's market as SNLR above 60%, and a buyer's market as below 40%).
Months of inventory (MOI) — a measure of how long it would take to exhaust current stock at the current rate of sales — stands at approximately 3.8 months for March 2026. This is meaningfully above the sub-1-month MOI seen during the 2021–2022 seller's market frenzy, but represents an improvement from the 4.5-month peak reached in late Q3 2025. According to CREA's national definitions, a balanced market for London typically falls between 3 and 5 months of inventory.
We're seeing more offers conditional on financing and inspection than at any point since 2019. That's a healthy signal — buyers are taking appropriate time, and sellers who are priced correctly are still transacting efficiently.
— Ryan Hodge, Broker | The Realty Firm Inc.Interest Rates and Mortgage Affordability in 2026
The Bank of Canada held its policy rate at 2.75% through Q1 2026, following a series of reductions from the peak of 5.0% reached in mid-2023. As of March 2026, the average 5-year fixed mortgage rate from major Canadian lenders sits in the 4.5%–5.0% range, with insured (high-ratio) product rates modestly lower. Variable rate mortgages are priced near the prime rate, currently at approximately 4.95%.
For London Ontario buyers, this rate environment translates to meaningfully improved purchasing power compared to the 2023 peak, but qualification remains stricter than the pre-2022 era. Under OSFI's mortgage stress test, borrowers must qualify at the greater of their contract rate plus 2%, or 5.25%. At a 4.75% contract rate, the qualifying rate is therefore 6.75% — a figure that continues to constrain first-time buyer purchasing power at the margins.
Estimates based on 25-year amortization. For your specific situation, talk to a London Ontario real estate expert about current qualification parameters.
London Ontario Neighbourhood Activity – March 2026
Market conditions in London are not uniform across all neighbourhoods. As tracked through LSTAR's MLS® System, the following communities showed the highest transaction volume and tightest supply-demand conditions in March 2026:
Most Active Neighbourhoods
- Hyde Park
- Sunningdale
- Masonville
- Byron
- Westmount
- Lambeth
- Old East Village
- Wortley Village
- Fox Hollow
- Riverbend
- Oakridge
- Bostwick
North London — Continued Family Demand
Hyde Park, Sunningdale, and the Masonville corridor continue to be London's most competitive sub-markets. Detached homes in the $750,000–$1,100,000 range are seeing multiple-offer situations on well-staged properties, with days on market averaging 12–18 days. School catchment areas (particularly those served by John Paul II and Sir Frederick Banting secondary schools) remain a primary driver of demand. Buyers looking to search London Ontario homes for sale in North London should expect to move decisively when the right property appears.
South London — Strong Fundamentals
Byron and Westmount remain perennially desirable. The Byron market in particular — adjacent to Boler Mountain and the Thames Valley Parkway trail system — sees consistent demand from move-up buyers in the $650,000–$950,000 range. Lambeth has emerged as a meaningful alternative, offering newer construction at slight price discounts to established Byron addresses. If you're considering selling in South London, our free home evaluation will give you an accurate current-market assessment.
East London and the Student Rental Market
Old East Village and the neighbourhoods surrounding Fanshawe College continue to attract investor buyers focused on the student rental segment. According to Statistics Canada's rental market data and CMHC's London rental report, vacancy rates in London remain near 2.8% — well below the national average — supporting continued investor interest despite higher carrying costs. Entry-level properties in the $380,000–$490,000 range are the most actively transacted in this zone.
What March 2026 Means for London Ontario Home Buyers
Buyers entering the London market in March 2026 are operating in a more balanced environment than at any point since 2019. The shift matters practically: more inventory means more choice, longer days on market mean more time for due diligence, and normalized negotiation dynamics mean conditions on financing and inspection are generally accepted.
- Conditional offers on financing and home inspection are again routinely accepted by sellers
- Average days on market across London is approximately 28 days — allowing time for thoughtful decisions
- Multiple-offer situations still occur in North London's desirable detached segment — preparation matters
- Pre-approval is non-negotiable in this rate environment; stress test qualification should be confirmed before you begin touring
- The spring market (March–May) historically sees the strongest new listing volumes, offering buyers the widest selection of the year
- First-time buyers should explore the federal First Home Savings Account (FHSA) and Home Buyers' Plan (HBP) — both remain active policy tools in 2026
If you're ready to search London Ontario homes for sale, working with a local broker who understands neighbourhood-level nuance — not just city-wide averages — makes a measurable difference in the outcome.
What March 2026 Means for London Ontario Home Sellers
Sellers in London Ontario in March 2026 are operating in a more demanding market than 2021–2022, but significantly better conditions than the correction trough of mid-2023. The key variable for sellers is pricing discipline. According to LSTAR data, the spread between original list price and final sale price in London widened to approximately 97.2% list-to-sale ratio in March 2026 — meaning sellers who price accurately are largely achieving their asking price, while overpriced listings are sitting and requiring reductions.
The sellers doing well right now are the ones who priced based on what the market is actually telling us — not what their neighbour got in 2022. That number is history. This market rewards accuracy.
— Sandra Tavares, Broker of Record | The Realty Firm Inc.Seller's Checklist for Spring 2026
- Obtain a current, data-driven home evaluation — not an estimate from an automated online tool
- Invest in professional photography and staging; buyer expectations have risen alongside inventory choice
- Price within 3–5% of comparable recent sales — not the listing price of competing homes
- Plan for conditional offers; insisting on firm offers in this market significantly reduces your buyer pool
- Spring 2026 new listing volumes are elevated — differentiation through presentation and pricing matters more than ever
To understand precisely what your London Ontario home is worth in March 2026's market, contact Ryan & Sandra for a no-obligation, current market analysis.
London Ontario Real Estate Outlook: Spring 2026
Looking ahead through Q2 2026, CREA's national forecast anticipates modest price recovery across most Ontario markets as rate stability encourages sidelined buyers back into the market. London's structural fundamentals — its student population, healthcare employment base, and ongoing in-migration from the GTA — position it well relative to smaller Southwestern Ontario markets.
The Bank of Canada's rate trajectory will be the single most significant variable. If the policy rate remains at 2.75% through mid-2026 as currently signalled, fixed mortgage rates should hold in the 4.5%–5.0% range, maintaining current affordability conditions. Any surprise cut — particularly if labour market data softens — could accelerate buyer re-entry and tighten inventory faster than the current consensus projects.
March 2026 is a window of genuine opportunity for prepared buyers in London Ontario — more choice, more negotiating leverage, and stabilizing prices. For sellers, the market rewards precision and presentation. Whether you're buying, selling, or simply monitoring the market, having an accurate, current picture is the foundation of every good real estate decision.
Frequently Asked Questions
What is the average home price in London Ontario in March 2026?
According to LSTAR (London and St. Thomas Association of REALTORS®), the benchmark price for a residential home in London Ontario in March 2026 sits at approximately $621,400 — a modest year-over-year decline of roughly 2.3% from March 2025, reflecting broader correction trends across Ontario markets. Detached homes average higher at approximately $695,000, while townhomes remain the most accessible segment near $490,000.
Is it a buyer's market or seller's market in London Ontario right now?
As of March 2026, London Ontario is broadly in balanced-to-buyer's market territory. According to LSTAR data, the months of inventory (MOI) has risen to approximately 3.8 months — above the 3-month threshold that typically signals balanced conditions. Buyers have more negotiating room than they did in 2021–2022, but well-priced, move-in-ready homes in desirable neighbourhoods like Masonville, Byron, and Sunningdale are still attracting multiple offers.
How many homes sold in London Ontario in March 2026?
LSTAR reported approximately 695 residential sales in London-St. Thomas for March 2026 — modestly below the 10-year March average but an 18% improvement over February 2026, consistent with the typical spring market acceleration. New listings reached approximately 1,380 units, producing a sales-to-new-listings ratio near 50%, firmly in balanced market territory per CREA's national definitions.
Is now a good time to buy a home in London Ontario?
For qualified buyers, March 2026 presents a more favourable entry point than much of the 2020–2022 period. Prices have softened from peak levels, inventory is higher, and buyers have more time to conduct due diligence. The Bank of Canada has held its policy rate at 2.75%, and fixed mortgage rates have stabilized in the 4.5%–5.0% range. Buyers who are financially ready and planning a long-term hold of five or more years are in a reasonable position to act.
What London Ontario neighbourhoods are the most active right now?
According to activity tracked through LSTAR's MLS® System, the highest-volume neighbourhoods in London Ontario for March 2026 include North London communities such as Hyde Park, Sunningdale, and Masonville, along with the established South London markets of Byron, Westmount, and Lambeth. Entry-level demand in East London and the Old East Village has also remained steady, driven by first-time buyers and investors targeting the student rental market near Fanshawe College.
Related Resources
Statistics and benchmark prices cited in this market update are sourced from:
- LSTAR – London & St. Thomas Association of REALTORS®
- CREA – Canadian Real Estate Association
- Bank of Canada – Policy Rate Announcements
- CMHC – Rental Market Report
- Statistics Canada – Housing & Census Data
Ready to Make Your Move in London Ontario?
Whether you're buying, selling, or just getting your bearings in today's market, Ryan & Sandra are here to give you a clear, honest picture.
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