The Market Rebounds — Sales Up 8.8% and Prices Turning Positive
May 2026 delivers the strongest sales performance of this cycle — 776 homes sold, up 8.8% year-over-year, with average prices turning positive for the first time. With new listings falling and the SNLR climbing to 42.8%, the market is approaching the edge of balanced territory.
May 2026 at a Glance
May 2026 is the strongest month this cycle has produced. 776 homes sold — up 8.8% year-over-year — marks the biggest sales gain in this entire series. At the same time, new listings fell 9.1% to 1,815, tightening the supply-demand dynamic and pushing the sales-to-new-listings ratio up to 42.8% — the closest this market has come to balanced conditions since the slowdown began.
The average sale price of $662,292 turned positive year-over-year for the first time this cycle (+1.0%), while months of inventory dropped to 4.3 from April's 5.0. The direction of every key indicator has shifted — this is the most seller-friendly data the London Ontario market has produced in over a year.
"Sales up 8.8%. New listings down 9.1%. Average price positive for the first time this cycle. The SNLR at 42.8% — right on the edge of balanced. May 2026 is the clearest rebound signal London Ontario has produced in over a year."
Ryan Hodge & Sandra Tavares · The Realty Firm Inc. BrokerageHPI Benchmark Prices — And the First Positive Average Price Reading
The HPI (Home Price Index) benchmark remains the most reliable pricing measure, tracking the price of a typical home without distortion from outlier sales. May 2026 HPI data does not include year-over-year comparison figures, but the benchmarks themselves provide important reference points as the market shifts.
| Property Type | HPI Benchmark | Note |
|---|---|---|
| Composite (All Types) | $571,300 | No YoY provided |
| Single-Family Detached | $641,100 | No YoY provided |
| Townhouse / Row | $430,200 | No YoY provided |
The average sale price of $662,292 is up 1.0% year-over-year — the first positive average price reading in this cycle and a meaningful signal that pricing pressure is starting to ease. The median sale price of $585,000 is down 4.1% year-over-year, which reflects a divergence: higher-end sales are pulling the average up while the mid-market continues to show softness. The sale-to-list ratio improved to 97.8% from 97.4% — buyers are negotiating a slightly smaller discount off asking price.
New Listings Down 9.1% — The Supply Equation Is Shifting
The most significant supply story in May is what didn't happen: new listings fell 9.1% year-over-year to 1,815. Sellers are pulling back at the same time buyers are re-engaging — a combination that compresses inventory and improves market conditions for existing sellers. Active listings of 3,353 are up just 3.5% year-over-year — the slowest inventory growth rate this cycle by a significant margin.
Months of inventory dropped from April's 5.0 to 4.3 — firmly in the balanced range of 4.0–6.0 and approaching the lower end. The sales-to-new-listings ratio of 42.8% is just 1.2 percentage points below the 44% threshold that begins to signal a balanced market. Median days on market held steady at 24 days — the market continues to move at a consistent pace for correctly priced listings.
Buyers and Sellers: Reading the May Momentum
Still Favourable — But the Window Is Narrowing
- 42.8% SNLR — technically still buyer's market, but approaching balanced rapidly
- 3,353 active listings — strong selection remains, though inventory growth is slowing
- 97.8% sale-to-list — negotiation room is tightening from prior months
- Average price turned positive YoY — early signal that the price floor may be in
- 24-day median DOM — move with purpose; good listings are not sitting long
- If you've been waiting for the bottom, the May data suggests conditions are shifting
Best Market Conditions in Over a Year
- 776 sales — highest monthly volume in this cycle's recent data
- Average price up 1.0% YoY — first positive price reading this cycle
- New listings down 9.1% — less competition than in any recent month
- SNLR at 42.8% — approaching balanced; demand is genuinely strengthening
- 24-day median DOM — homes priced correctly are moving efficiently
- Spring momentum is real — a well-positioned listing has the best odds it's had in over a year
What the May 2026 Data Is Telling Us
May 2026 is the clearest rebound signal this market has produced in the current cycle. Sales up 8.8%. New listings down 9.1%. Average price positive for the first time. SNLR at 42.8% — approaching balanced territory. Every major indicator moved in the same direction simultaneously, which is unusual and meaningful.
The question now is whether this momentum holds. A single strong month can reflect seasonal factors as much as structural shifts. The key signals to watch: does the SNLR push above 44–45% in coming months? Do new listings remain suppressed, or does summer bring a wave of sellers back to market? Does the average price continue its positive trajectory, or was May an outlier?
For buyers, the data is clear: the period of deepest buyer advantage in this cycle may be passing. For sellers, May represents the best conditions the market has offered in over a year — and a well-prepared, correctly priced listing is positioned to benefit. As always, strategy matters more than timing, and the right guidance makes the difference.
Ryan and Sandra give you straight data, no spin — and a strategy built for the market as it actually is, not as it was.
Book a Consultation
Ryan Hodge & Sandra Tavares · The Realty Firm Inc. Brokerage
📞 519-601-1160 ·
✉ info@ryanandsandra.ca ·
🌐 www.ryanandsandra.ca
734 Wellington Street, London, Ontario N6A 3S4
All market data sourced from LSTAR (London and St. Thomas Association of REALTORS®). Not intended as financial or investment advice.
