01

The Big Story: A Selection Explosion

If you've been watching London Ontario homes for sale and wondering why your realtor keeps saying "you finally have options," here's the number behind it: active listings across London and St. Thomas hit 3,463 in June 2026, up 5.4% from a year ago and up a striking 90.1% from June 2023. In the City of London alone, active listings climbed to 2,264, up 7.8% year-over-year and more than double where they sat three years ago.

That's the headline. For years, London buyers had almost nothing to choose from and even less time to decide. That era is over — at least for now.

02

So — Are Prices Actually Falling?

Here's where we go straight to the LSTAR data instead of the headlines. The MLS® HPI Composite Benchmark Price for London and St. Thomas sits at $561,100 for June 2026. That's down 1.6% from last month and down 3.5% from twelve months ago — a real but modest pullback, not a freefall.

Zoom out six months and the picture gets more interesting: the composite benchmark is actually up 1.5% versus this past January. In other words, prices softened through the back half of last year, found a floor, and have been essentially flat-to-slightly-positive since. That's not the story of a market in decline. It's the story of a market absorbing a lot of new supply without buckling.

Average sale price tells a noisier version of the same story — it's down 6.7% year-over-year to $606,614 board-wide — but average price swings with the mix of what sold that month. The benchmark is the number that actually reflects a typical home, which is exactly why we lead with it.

03

Where the Market Actually Sits

Months of inventory — how long it would take to sell everything on the market at the current pace of sales — is the cleanest read on market temperature. London and St. Thomas is sitting at 4.6 months of inventory. Generally, under 3 months favours sellers, 3 to 5 months is balanced, and above 5 to 6 months starts to favour buyers.

That puts us squarely in balanced territory, leaning toward buyers — a very different market than the sub-1-month environment we saw in 2021 and 2022, but nowhere near the deep buyer's markets some other Ontario regions are experiencing right now.

The sale-to-list price ratio backs this up: homes across the board are still selling at 97.8% of asking, on average, with a median of 26 days on market. Properly staged, strategically priced listings are still commanding strong attention — it's the overpriced segment of the market that's absorbing the pressure.

04

What This Means for You

If you're buying: this is the most leverage you've had in years. More selection, more negotiating room, and less pressure to waive conditions. That doesn't mean every listing is a deal — well-priced homes in desirable pockets are still moving quickly and at strong sale-to-list ratios.

If you're selling: pricing strategy matters more now than it has in years. With 4.6 months of inventory board-wide, buyers can afford to be selective, and overpriced listings are the segment absorbing the downward pressure in this market. Homes priced at fair market value, properly staged, are still selling at 98% of list price in about a month.

If you're relocating or investing: London remains meaningfully more affordable than the national composite, with a benchmark price well below the Canadian average — while still offering the inventory selection that's been missing for years.

05

The Half-Year Forecast

With the Bank of Canada signalling a prolonged hold and CREA projecting a soft-landing year for Ontario prices, we don't expect a dramatic shift in either direction through the second half of 2026. The more likely path: inventory stays elevated through late summer as new listings continue to outpace absorption, months of inventory holds in the 4-to-5 range, and the composite benchmark trades in a narrow band around where it sits today.

The real variable to watch is whether first-time buyers — who've been sitting on the sidelines for years — start absorbing this inventory the way CREA's national forecast assumes. If they do, expect the current buyer's-market lean to soften heading into fall.