Is the London Ontario Market Finally Turning? May 2026 Numbers Say Yes.
Sales jumped 8.8% year-over-year. The benchmark price is climbing. East London posted its biggest volume surge in years. Here is what the May data actually means for buyers and sellers in London right now.
May Sales Rebounded — and the Gap With Last Year Is Closing
London and St. Thomas recorded 776 residential sales in May 2026, a meaningful 8.8% increase over May 2025. That single month figure reverses what had been a softer year-to-date pace — with 2,746 transactions logged through the first five months, the market is running approximately 3.4% below the same period last year, but the direction of travel in May is encouraging.
Dollar volume for May hit $513.9 million, up 10.0% year-over-year — which means the average transaction value also moved higher, not just unit count. The sale-to-new-listings ratio came in at 42.8%, technically still in buyer's market territory but climbing from the low-30s range we saw earlier in the year. The trend line is pointing toward equilibrium.
"London's May rebound outpaces the national picture. While CREA revised its 2026 national forecast downward to roughly 1.5% price growth, London's benchmark is ticking up and sales momentum is building locally."
What Homes Are Actually Worth Right Now — By Type
The MLS® HPI Benchmark Price is the most reliable indicator of what a typical home is worth in a given category. Unlike the average price, it is not distorted by the mix of homes sold in any given month. Here is where each segment sits as of May 2026.
Bungalows continue to demonstrate the tightest supply-demand dynamic. The one-storey benchmark is up 3.5% over six months — the strongest six-month appreciation of any home type in the market. Buyers targeting bungalows face consistent competition and limited resale inventory. The townhouse segment is the clearest exception: oversupply relative to demand has kept prices under pressure, and sellers in that category need to price accordingly.
Sellers Are Pulling Back — and That Is Shifting the Balance
New listings came in at 1,815 for May — a notable 9.1% drop compared to May 2025. Fewer sellers listing in a month where buyer activity is rising means the inventory equation is tightening. Total active listings stand at 3,353, which is 3.5% above last year, but the pace of that year-over-year gap is narrowing as sales absorb more of the available supply.
At 4.3 months of inventory, London remains in balanced-to-buyers-market territory by the standard 3.5–6.5 month range. But with months of inventory at 4.5 last May and now trending down, the direction matters as much as the absolute number. The market is tightening, not loosening.
The median days on market of 24 days means well-priced homes are still moving in under a month — but that is up from 21 days last May. Pricing discipline from sellers is essential. Homes that sit are sending a signal to buyers that something is off, and that perception is difficult to recover from.
North London Holds the Premium. East London Is Moving Fastest.
| Area | May Sales | vs. May 2025 | Avg. Price | Months Inv. | Median DOM |
|---|---|---|---|---|---|
| North London | 165 | ↑ 12.2% | $733,310 | 4.1 | 26 days |
| East London | 149 | ↑ 29.6% | $476,844 | 3.8 | 18 days |
| South London | 213 | ↑ 4.4% | $677,226 | 4.3 | 24 days |
North London remains the city's premium market — an average sale price of $733,310 in May reflects the concentration of larger, newer detached homes in corridors like Sunningdale, Masonville, and Uplands. With 4.1 months of inventory, North is also among the tighter sub-markets in the city. Sales were up 12.2% from last May, showing that demand at the upper end of the London market has resumed after a cautious first quarter.
East London is the story of the month. A 29.6% year-over-year sales surge is the largest of any area — driven by affordability-conscious buyers who are finding value in East London's price point. At an average of $476,844 and just 18 days median on market, East London is moving faster than any other part of the city. Inventory at 3.8 months sits below the overall market average, which means competition is real in the sub-$500,000 range. First-time buyers and investors are both active here.
South London contributed the highest unit volume of the three main areas at 213 sales, up 4.4% year-over-year. Average prices in the South came in at $677,226 — a 4.4% gain over the prior month, showing real appreciation momentum in an area that covers a broad range of home types from established family neighbourhoods to newer developments.
Single Family Leads. Townhouses Lag. Condos Are Quietly Recovering.
Single family homes dominated May with 590 sales — up 8.1% from May 2025. Average price for single family reached $723,671, up 2.4% year-over-year. At 4.1 months of inventory, detached homes continue to see the most competitive conditions of any property type, and the benchmark price of $623,700 has been grinding higher for three consecutive months.
Townhouses posted 111 sales — a 26.1% jump in unit count over May 2025, which is notable. However, the benchmark price tells a different story at $438,900, down 2.3% from last month and 4.4% over three months. Townhouse supply has outpaced demand for several months running, which means unit volume is driven by price capitulation rather than genuine competitive pressure. Sellers in this segment must be surgical about pricing from day one.
Apartments recorded 44 sales — down 21.4% from last May, and the benchmark at $342,000 year-over-year is still under pressure. But the month-over-month reading is interesting: the apartment benchmark is up 4.1% from April and up 4.4% over three months. That is either early noise or an early signal — worth watching closely over the next two months to determine if condo buyers are beginning to re-enter at current values.
- Bank of Canada held at 2.25% on April 29. The next rate decision is June 10, 2026. The BoC flagged a potential rate hike in response to oil-driven inflation — fixed mortgage rates have already ticked up in response to higher bond yields. Variable rate holders are currently at prime minus their discounts, with prime rates around 4.45%.
- Ontario HST Rebate on New Builds (April 2026 – March 2027). The Ontario government is proposing to eliminate the full 13% HST on new homes up to $1 million. Combined with the federal GST rebate, eligible buyers of new construction could see up to $130,000 in tax relief. Agreements of purchase and sale must be entered between April 1, 2026 and March 31, 2027. Note: the provincial component is still subject to final legislative passage.
- 30-Year Amortizations remain available for first-time buyers on insured mortgages, and for any buyer on a newly built home. This meaningfully reduces monthly carrying costs compared to the previous 25-year default.
- $1.5M Insured Mortgage Cap. Since December 2024, buyers can access insured mortgages — meaning smaller down payments — on homes up to $1.5 million. This expands buying power for move-up purchasers in North and South London's higher price corridors.
- CREA National Forecast revised down to 1.5% price growth in 2026 (approx. $688,955 national average). Ontario is projected to see flat-to-minimal price gains nationally — but London's local May data is outperforming that projection, with benchmark prices rising and sales momentum building.
The Window for Buyers Is Open. It May Not Stay That Way Through the Fall.
The combination of stable-to-softening rates, meaningful policy incentives for first-time buyers, and a market that has not yet fully absorbed its pent-up demand creates a window of opportunity that is difficult to replicate in a tightening cycle. London's benchmark price has moved higher in three of the last four months — a directional shift that historically precedes more sustained price appreciation.
Sellers who have been waiting for better conditions should note that buyer activity is returning and new listings are declining — that combination historically tightens the market into the fall. Listings that arrive in June and July will face a more competitive absorption environment than those listed a year ago.
For buyers, the calculus is straightforward: inventory is available, rates are not rising dramatically, and incentive programs — particularly for new construction — are time-limited. The argument for waiting is weaker today than it has been at any point in the past two years.
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Data source: LSTAR (London and St. Thomas Association of REALTORS®) MLS® Residential Market Activity and Home Price Index Report, May 2026. Prepared by the Canadian Real Estate Association (CREA). All data based on PropTx MLS® System collected on the first calendar day of the month and subject to revision. National context sourced from CREA Quarterly Forecast (April 16, 2026) and Bank of Canada rate announcement (April 29, 2026).
