London Ontario Real Estate Market Update: September 2026 — Sales Up, Prices Still Soft
561 homes sold across London and St. Thomas in September, up 5.3% from last year. Inventory tightened a touch, but buyers still have plenty of choice, and prices are still finding their floor.
The Headline: More Homes Sold, Prices Still Soft
September brought a little more momentum to the London and St. Thomas market. According to the London and St. Thomas Association of REALTORS® (LSTAR), 561 homes sold in September 2026, up 5.3% from September 2025. That's a real lift, and it came in a month when new listings actually pulled back.
Prices, though, haven't turned the corner yet. The composite MLS® Home Price Index (HPI) benchmark price was $552,500, down 2.6% from a year ago and down 0.2% from August. Over six months the benchmark has slipped 1.9%, so the slide is slowing, but it hasn't stopped.
Here's the simplest way to read September: buyers are showing up, but they're showing up with choice and leverage. With 3,335 homes on the market at month end and a median of 34 days on market, nobody is rushing. Homes that are priced right and presented well are selling. Homes that aren't are sitting.
September 2026 by the Numbers
Here's the full picture for the LSTAR area (London, St. Thomas, Elgin and Middlesex), compared with September 2025:
| Indicator | Sept 2026 | Sept 2025 | Change |
|---|---|---|---|
| MLS® HPI composite benchmark | $552,500 | — | −2.6% |
| Sales | 561 | 533 | +5.3% |
| New listings | 1,615 | 1,701 | −5.1% |
| Active listings | 3,335 | 3,234 | +3.1% |
| Months of inventory | 5.9 | 6.1 | Slightly tighter |
| Sales-to-new-listings ratio | 34.7% | 31.3% | Up 3.4 pts |
| Average sale price | $611,509 | — | −1.9% |
| Median sale price | $560,000 | — | −4.3% |
| Sale-to-list price ratio | 96.9% | 97.0% | Flat |
| Median days on market | 34 | 29 | +5 days |
Source: LSTAR / CREA, September 2026 Residential Market Activity and MLS® HPI Report.
Why we lead with the benchmark, not the average
You'll see the average sale price quoted in a lot of headlines. We lead with the MLS® HPI benchmark because it tracks the value of a "typical" home with consistent features over time. The average price just reflects whatever happened to sell that month. If a handful of large luxury homes close, the average jumps. If a wave of condos closes, it drops. Neither tells you what your home is worth.
The benchmark strips out that mix, which is why it's the better gauge of real price direction. This month, it says values are about 2.6% below last year.
Year to date: still behind 2025
One strong month doesn't make a year. Through the first nine months of 2026, LSTAR recorded 5,256 sales, down 3.6% from the same period in 2025, with a year-to-date median of 28 days on market. September was a good month in a year that has been slower overall.
By Property Type: Bungalows Hold, Townhouses Move
Not every type of home is behaving the same way. Here are the September MLS® HPI benchmark prices and how they compare with a year ago:
Holding value best of any home type. Bungalows remain in demand with downsizers and buyers who want main-floor living.
The classic family home is seeing more price pressure, which creates an opening for move-up buyers.
The biggest price drop, and the biggest buyer response. Townhouse sales jumped 54.2% (74 sales vs. 48) as buyers took advantage of lower prices.
Condo apartment values remain soft, but they were up 0.4% month over month, an early sign they may be stabilizing.
The townhouse story is worth paying attention to. When prices fall about 10%, buyers notice, and September proved it. For first-time buyers, this is one of the more affordable ways into homeownership in London that we've seen in a while.
By Area: London South Leads, St. Thomas Cools
Across the region, the story changes depending on where you look. Here's how the main LSTAR areas compared in September:
| Area | HPI Benchmark | HPI YoY | Sales (YoY) | Months of Inventory |
|---|---|---|---|---|
| London South | $550,400 | −2.7% | 164 (+19.7%) | 5.4 (6.3 last yr) |
| London East | $432,300 | −1.1% | 110 (+13.4%) | 5.5 (6.4 last yr) |
| London North | $613,000 | −3.4% | 107 (−7.8%) | 6.4 (5.3 last yr) |
| St. Thomas | $496,800 | −6.5% | 41 (−28.1%) | 5.9 (3.8 last yr) |
| Central Elgin | $623,100 | −6.6% | 18 (+80.0%) | 6.0 (14.1 last yr) |
| Middlesex Centre | $756,300 | −2.2% | 24 (+84.6%) | 6.9 (10.2 last yr) |
| Strathroy-Caradoc | $729,500 | −1.5% | 31 (+6.9%) | 4.2 (6.1 last yr) |
| Thames Centre | $713,800 | −0.3% | 9 (−10.0%) | 11.0 (9.5 last yr) |
Small markets can swing sharply on just a few sales. Treat big percentage moves in smaller towns as direction, not destiny.
London South: the busiest part of the city
London South led the region with 164 sales, up 19.7%, and inventory dropped from 6.3 to 5.4 months. That's the strongest buyer response in the city this month.
London East: the most stable prices
London East posted the smallest benchmark drop in the city at just −1.1%, with sales up 13.4%. As London's most affordable large area, with a benchmark of $432,300, it keeps attracting first-time buyers and investors.
London North: highest prices, more supply
London North still carries the city's highest benchmark at $613,000, but sales dipped 7.8% and inventory climbed to 6.4 months. Sellers in the north end are competing with more listings than they were a year ago.
St. Thomas: a noticeable slowdown
St. Thomas had a quieter month: sales fell 28.1% and the benchmark slipped to $496,800 (−6.5%). Inventory rose from 3.8 to 5.9 months. For buyers who've been waiting on St. Thomas, there's more room to negotiate than there has been in some time.
Micro-Markets Are Splitting Apart
This is the part of the report most people miss. Region-wide averages hide huge differences between neighbourhoods. LSTAR breaks the market into dozens of smaller districts, and in September some of them were nearly sold out while others had well over a year of supply.
London's South O (1.2 months), South G (1.3) and South M (2.4) had very little supply. Priced right, homes in pockets like these can still draw competition.
Lucan (15.7 months), Kilworth (17.3) and Lucan Biddulph overall (17.7) had well over a year of supply. Sellers there have to compete on price and presentation.
Prices are splitting too. A few London districts, such as East O (+4.0%) and North R (+1.9%), were up year over year, while others, like North E (−8.6%) and East K (−8.2%), saw much sharper drops than the city overall.
"There is no single London market anymore. Your street, your price point and your property type matter more than any headline number."
Ryan Hodge & Sandra TavaresWhat This Means for Buyers
A sales-to-new-listings ratio of 34.7% is firmly in buyers' market territory. For every three homes that come on the market, roughly one sells. That gives you time, choice and negotiating power, especially on homes that have been sitting.
With townhouse benchmarks down 10% and condo apartments down 9.6%, entry-level homes are more attainable than they've been in years. Get pre-approved and be ready to act on the right one.
Two-storey values are down 4.9%. If you're selling a bungalow (down just 0.5%) to move up, the gap between what you sell and what you buy has narrowed in your favour.
Softer prices, more choice and steady rental demand make this a good time to look at income properties, but run the numbers on today's prices and rates, not last year's.
The median home took 34 days to sell and sold at 96.9% of list price. Homes that have been on the market for a while often leave room for conditions, price and closing flexibility.
What This Means for Sellers: Price, Product, Promotion
Homes are selling in London. But in a market with nearly six months of inventory, buyers compare everything. Sellers who win this fall are getting three things right:
-
01
Price for Today's Market
Price against current competition and recent sales in your micro-market, not what a neighbour got in 2022 or what the average price headline says. The first two weeks on market are when you get the most attention. Overpricing wastes them.
-
02
Prepare the Product
Buyers have options, so condition matters. Fix the small things, declutter, stage and get a pre-list inspection if it makes sense. Your home should look like the best value on the street.
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03
Promote It Aggressively
Professional photography and video, strong online exposure, and targeted marketing to the buyers most likely to buy your type of home. In a market like this, listing on MLS® and waiting isn't a plan.
If your home is in one of the tighter pockets, you still have leverage. If it's in an area with 10+ months of supply, sharp positioning from day one is the difference between selling this fall and sitting into the new year.
The Bigger Picture: Rates, Forecasts and Incentives
Local numbers don't happen in a vacuum. Here's the national and provincial context buyers and sellers should keep in mind this fall:
- Bank of Canada: The policy rate is holding at 2.25%, unchanged at the September 2 announcement, as the Bank weighs trade and inflation risks. The next decision is October 28, 2026.
- CREA forecast: In its July update, CREA projected national home sales to dip about 1.4% in 2026 before rising about 3.7% in 2027, with the national average price edging up roughly 1% in each year.
- First-time buyer GST relief: Eligible first-time buyers of newly built homes can qualify for a federal GST rebate of up to $50,000 on homes up to $1 million, phasing out up to $1.5 million.
- Ontario HST relief on new homes: Ontario's expanded rebate can cover the full 13% HST on qualifying new homes up to $1 million bought as a primary residence, for agreements signed April 1, 2026 to March 31, 2027. Details and eligibility apply, so confirm with your lawyer or builder.
Quick Answers: London Real Estate in Fall 2026
Is it a buyer's or seller's market in London, Ontario right now?
Overall, it leans toward buyers. In September 2026 the LSTAR sales-to-new-listings ratio was 34.7% with 5.9 months of inventory. Some London neighbourhoods are much tighter, though, so conditions depend on the area and property type.
What is the benchmark home price in London and St. Thomas?
The composite MLS® HPI benchmark price for the LSTAR area was $552,500 in September 2026, down 2.6% from September 2025.
Are home prices still falling in London?
Prices are still soft but the decline has slowed. The benchmark fell 0.2% from August and 1.9% over six months. One-storey homes have held value best (−0.5% year over year), while townhouses (−10.0%) and apartments (−9.6%) have dropped the most.
How long are homes taking to sell in London?
The median days on market across LSTAR was 34 in September 2026, up from 29 a year earlier. Homes sold at an average of 96.9% of their list price.
September in Five Points
- Sales rose 5.3% to 561, but prices are still soft with the benchmark at $552,500 (−2.6%).
- Buyers hold the advantage with a 34.7% sales-to-new-listings ratio and 5.9 months of inventory.
- Bungalows are holding value; townhouse prices fell 10% and sales jumped 54.2%.
- London South led with sales up 19.7%; St. Thomas sales dropped 28.1%.
- Micro-markets range from about 1 month to more than 17 months of supply, so local strategy matters more than ever.
Every neighbourhood, price range and property type is behaving differently right now. If you're thinking about buying or selling in London or St. Thomas, we'd be happy to show you exactly what these numbers mean for your home or your search. No pressure, no obligation.
Visit Us Online at www.ryanandsandra.caRyan Hodge & Sandra Tavares
The Realty Firm Inc., Brokerage
734 Wellington Street
London, Ontario N6A 3S2
Awards & Reviews
Sources: London and St. Thomas Association of REALTORS® (LSTAR) / Canadian Real Estate Association (CREA), September 2026 Residential Market Activity and MLS® Home Price Index Report. Bank of Canada policy rate announcement, September 2, 2026. CREA national housing forecast, July 2026. Government of Canada and Government of Ontario new-home GST/HST rebate programs.
Statistics are market-wide and are not a forecast, appraisal or guarantee of future results. Incentive eligibility varies; confirm details with your lawyer, builder or lender. The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA). REALTOR® is a trademark controlled by CREA.
