August 2026 · Market Update
London's Housing Market Just Crossed Into Balanced Territory. Here's What That Means for You.
The July 2026 LSTAR numbers are in — and for the first time in years, London and St. Thomas isn't a buyer's market or a seller's market. It's something in between, and that changes the playbook for everyone.
01 — The Benchmark Number That Matters
The Real Story Isn't the Average — It's the Benchmark
Headlines love the average sale price, but averages get skewed by a handful of high-end sales. The number that actually reflects what a typical London home is worth is the MLS® HPI Composite Benchmark Price — and in July 2026, that figure sat at $557,000, down 0.7% from June and down 4.0% from a year ago.
Alongside that, 686 homes changed hands across London and St. Thomas in July — down 4.9% year-over-year — at an average sale price of $603,006 and a median of $555,000. New listings came in at 1,543, down 5.1% from last July, while active inventory climbed to 3,367 properties, up 3.5%.
HPI Composite Benchmark
$557,000
-0.7% month-over-month
Homes Sold, July 2026
686
-4.9% year-over-year
Median Days on Market
30
up from 25 in July 2025
"London hasn't tanked. It's balanced. And a balanced market rewards preparation over guesswork — for buyers and sellers alike."
02 — Reading the Balance Signal
Why a 44.5% Ratio Is the Number to Watch
The sales-to-new-listings ratio measures how much of what's coming onto the market is actually selling. At 44.5% in July, London sits squarely in balanced-market territory (generally 40-60%) — up from 44.3% a year ago and well above the 40.1% we saw in July 2024.
Months of inventory tells the same story from a different angle: 4.9 months of supply, up from 4.5 last July. That's still a market with real activity — not a stall — but buyers now have room to be selective, and sellers can no longer assume a list price will hold without a strategy behind it. The sale-to-list price ratio backs this up: homes are selling at 97.1% of asking, down slightly from 97.6% a year ago.
03 — Property Type Breakdown
Not Every Property Type Is Moving the Same Way
The HPI benchmark breaks down differently depending on what you're buying or selling. Detached two-storey homes are holding the most value; townhouses are seeing the steepest pullback; and apartments — condos — are the one category that actually gained ground month-over-month.
Single Family
$606,800
-4.7% year-over-year
Two Storey
$663,300
-3.9% year-over-year
One Storey
$536,300
-6.0% year-over-year
Townhouse
$428,400
-9.4% year-over-year
Apartment (Condo)
$330,000
+1.8% month-over-month
That condo uptick is worth pausing on. While every other category softened month-over-month, apartments moved higher — likely a combination of affordability-driven demand and tighter condo inventory. If you're weighing entry-level or investment options, this is the segment showing the most resilience right now.
04 — What This Means for You
For Buyers
- More active inventory and softer benchmark pricing mean genuine negotiating leverage for the first time in years.
- Longer days on market (30, up from 25) means less pressure to waive conditions just to compete.
- Condos are firming up — if that's your segment, don't expect the same room to negotiate you'd find on a detached home.
For Sellers
- A 97.1% sale-to-list ratio means overpricing gets punished fast — homes priced to the benchmark, not to wishful thinking, are what's moving.
- 30 median days on market is the new baseline. If you're past that with no offers, it's a pricing or presentation problem, not bad luck.
- Data-driven pricing and a real marketing plan matter more in balanced conditions than they did in a seller's market — there's no rising tide to bail out a weak strategy.
The National & Policy Backdrop
- Bank of Canada: The policy rate held at 2.25% on July 15 — the sixth consecutive hold. The next announcement is September 2, 2026, and current signals point to continued stability.
- CREA National Forecast: CREA's latest outlook projects the national average home price rising 1.1% to $686,710 in 2026 — with Ontario the only province forecast to see sales activity increase this year.
- HST Relief on New Builds: First-time buyers purchasing a newly built home priced up to $1 million can currently combine the federal GST rebate with Ontario's temporary expanded HST rebate — worth up to $130,000 in combined savings on agreements signed between April 1, 2026 and March 31, 2027.
Heading Into Fall: What We're Watching
A delayed spring market has stretched into a longer selling season, and the data suggests fall will bring more of the same steady, balanced activity rather than a sharp swing in either direction. Whether you're negotiating as a buyer or positioning a listing to sell, the market is rewarding preparation, real comps, and a pricing strategy built on the benchmark — not the headline average. That's exactly what a multi-approach valuation gives you, and it's how we're guiding every client through this shift.
Visit Us Online at www.ryanandsandra.caRyan 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
Awards & Reviews
Data sourced from the London and St. Thomas Association of REALTORS® (LSTAR) Residential Market Activity and MLS® Home Price Index Report, July 2026; the Bank of Canada; and the Canadian Real Estate Association (CREA).
