Why Isn't My Condo Selling? The London, Ontario Condo Market Explained

Condos in London are sitting longer, selling for less, and pulling fewer offers than any other property type right now — and the reasons go far beyond "just a slow market."

Condos Have Fallen Firmly Into Buyer's Market Territory

If you're a condo owner wondering why your unit has been sitting on the market longer than you expected, the June 2026 data from the London and St. Thomas Association of REALTORS® (LSTAR) tells the story. Condos are no longer just a "softer" segment of the market — they're the clearest buyer's market in London real estate right now, and the gap between condos and freehold homes keeps widening.

We always start with the MLS® HPI benchmark price rather than average price, because it strips out the noise from one-off luxury or fixer-upper sales and gives a truer read on where typical condo values actually sit.

Rising Fees Are Shrinking the Buyer Pool

Condo fees have climbed sharply across London buildings over the past two years, and it's changing who can actually afford to buy. Lenders qualify buyers using purchase price and monthly carrying costs together — so a unit with a low list price but a high monthly fee can price out the same buyer who'd easily qualify for a freehold home at a similar price point.

The result: fewer qualified buyers in the pool, longer time on market, and sellers competing not just on price but on fee transparency.

"A soft condo market isn't just about price — it's about risk. The condos selling fastest right now are the ones sellers have already de-risked for the buyer before it ever hits MLS®."

The Three Red Flags That Kill Condo Deals Before Closing

Nearly every condo purchase agreement in Ontario includes a status certificate review condition — and it's often where deals fall apart. Buyers' lawyers are combing through these documents more carefully than ever, and three issues consistently spook them off a deal.

Why Investors Have Stepped Back From Condos

Investors were a major driver of condo demand in London for years — but rising fees, higher carrying costs, and thinner rental yields have pushed many to the sidelines. When monthly cash flow no longer pencils out against rent revenue, investor purchases dry up, and that removes a meaningful chunk of the buyer pool that used to compete for entry-level units.

Less investor competition means less upward pressure on price — which is part of why benchmark values have pulled back nearly 9% over the past year.

• The Bank of Canada has held its policy rate at 2.25% for six consecutive decisions as of its July 2026 announcement, meaning borrowing costs have been stable rather than falling — softer condo prices, not rate cuts, are what's currently creating buyer opportunity.
• New-build condos carry an added wrinkle: the federal and Ontario HST rebate programs for qualifying new builds continue to make some new-construction units more attractive than resale, adding another layer of competition for resale condo sellers to price against.
• CREA's national outlook continues to point to a gradual, uneven recovery rather than a sharp rebound — which is consistent with what we're seeing locally in the condo segment specifically.

How to Sell a Condo When Inventory Is High

With 5.8 to 6.9 months of inventory, condo sellers need a different strategy than they'd use in a balanced or seller's market. That starts before the listing ever goes live.

If You're Buying, This Is Your Window

For buyers — especially first-time buyers priced out of freehold homes — this softness in the condo market is a genuine opportunity. Benchmark prices down nearly 9% year-over-year, over five months of inventory, and 29.5 median days on market all add up to real negotiating leverage. The key is pairing that leverage with a careful status certificate review, so you're getting the discount without inheriting someone else's building problems.

London's condo market has shifted decisively into buyer's-market territory — driven by rising fees, an investor pullback, and status certificate risk that's harder to hide than ever. Sellers who price to current data and get ahead of red flags are still finding buyers. Buyers who do their diligence are finding real value. Either way, this is a market that rewards preparation over guesswork.

Ryan Hodge and Sandra Tavares | London, Ontario Real Estate Brokers

The Realty Firm Inc. Brokerage
519-601-1160  ·  ryan@therealtyfirm.ca  ·  www.ryanandsandra.ca
734 Wellington Street, London, Ontario N6A 3S2