September 2026 London Ontario Real Estate Market: Sales Up 5.3%, Benchmark Price at $552,500
According to the London and St. Thomas Association of REALTORS® (LSTAR), the MLS® Home Price Index composite benchmark price for London and St. Thomas was $552,500 in September 2026, down 2.6% year over year. Home sales rose 5.3% to 561 units, while months of inventory eased to 5.9 from 6.1 a year earlier — a market that still gives buyers real choice, but one where well-priced homes are selling.
01
September 2026 at a Glance: London and St. Thomas
September delivered a year-over-year improvement in sales, slightly tighter supply, and continued softness in prices across the region covered by the London and St. Thomas Association of REALTORS® (LSTAR). Here are the headline numbers from LSTAR's September 2026 Residential Market Activity and MLS® Home Price Index Report, prepared by the Canadian Real Estate Association (CREA).
$552,500
Down 2.6% year over year (LSTAR)
561
Up 5.3% year over year (LSTAR)
5.9
vs. 6.1 in September 2025 (LSTAR)
34.7%
vs. 31.3% in September 2025 (LSTAR)
1,615
Down 5.1% year over year (LSTAR)
3,335
Up 3.1% year over year (LSTAR)
$611,509
Down 1.9% year over year (LSTAR)
$560,000
Down 4.3% year over year (LSTAR)
Source: LSTAR / CREA, September 2026 Residential Market Activity and MLS® Home Price Index Report. Board-wide figures for London and St. Thomas.
02
Sales Activity: Up From Last Year, Still Below Long-Term Norms
LSTAR reported 561 residential sales in September 2026, up 5.3% from September 2025. Dollar volume reached $343.1 million, up 3.3% year over year, according to LSTAR.
Context matters here. That same LSTAR report shows September sales were still 30.4% below September 2019 and 31.4% below September 2016. So the improvement is real, but this is a recovering market, not a hot one.
Homes also took a little longer to sell. LSTAR's median days on market was 34 in September, up from 29 a year earlier, and the average sale-to-list price ratio was 96.9%, nearly unchanged from 97.0% in September 2025. In plain terms: buyers are taking their time, but homes that are priced right are still selling close to asking.
03
Supply, Inventory and Buyer Choice
New listings fell 5.1% year over year to 1,615 in September, according to LSTAR, while active listings at month end rose 3.1% to 3,335. Fewer new listings combined with more sales pushed the sales-to-new-listings ratio up to 34.7% from 31.3% a year ago.
Months of inventory — active listings divided by monthly sales — came in at 5.9, compared with 6.1 last September (LSTAR). For perspective, LSTAR's report shows months of inventory was 2.0 in September 2019 and 0.7 in September 2021. Today's buyers have far more choice than buyers did in any recent September before 2024.
Market Balance and Selling Strategy
A slight tightening in inventory doesn't change the bigger picture: there are still plenty of options, so buyers compare. For sellers, that makes the first two weeks on market the most important. A list price grounded in current comparable sales and the MLS® HPI benchmark for your property type gives you the best chance to catch active buyers before the listing goes stale. If you want help with that, our London Ontario real estate team can walk you through it.
04
MLS® Home Price Index Benchmark Values by Property Type
We lead with the MLS® Home Price Index (HPI) benchmark price because it tracks the value of a typical home with consistent features over time. Average and median prices shift depending on which homes happen to sell in a given month, which makes the HPI benchmark the more reliable measure for comparing London and St. Thomas home values year over year.
| Property Type | Sept 2026 Benchmark | 1 Month | 12 Months | 5 Years |
|---|---|---|---|---|
| Composite | $552,500 | -0.2% | -2.6% | -9.0% |
| Single Family | $600,700 | -0.2% | -3.0% | -9.7% |
| One Storey | $541,300 | +0.2% | -0.5% | -8.0% |
| Two Storey | $648,100 | -0.5% | -4.9% | -10.4% |
| Townhouse | $421,500 | -2.1% | -10.0% | -17.1% |
| Apartment | $317,100 | +0.4% | -9.6% | -12.6% |
What the Benchmark Data Shows
One-storey homes are holding their value best. The one-storey benchmark is down only 0.5% year over year, according to LSTAR, compared with a 4.9% decline for two-storey homes.
Townhouses are where the biggest price adjustment has happened. The townhouse benchmark is down 10.0% year over year and 17.1% over five years (LSTAR). That lower pricing appears to be pulling buyers back in: LSTAR reported 74 townhouse sales in September, up 54.2% from a year ago, and townhouse months of inventory fell to 6.7 from 9.4.
Apartment-style condos remain the slowest segment. The apartment benchmark is down 9.6% year over year, LSTAR's median days on market for apartments was 65 days, and apartment months of inventory sat at 8.3.
05
Average and Median Sale Price
LSTAR reported an average sale price of $611,509 in September 2026, down 1.9% year over year. The median sale price — the midpoint of all sales — was $560,000, down 4.3%.
The average fell less than the benchmark or the median. That usually means more higher-priced homes sold this month, not that values rose. LSTAR's single-family average price, for example, was $654,008, essentially flat (-0.3%) year over year, while the single-family benchmark was down 3.0%. That gap is exactly why the HPI benchmark leads our reporting.
06
London Neighbourhoods and St. Thomas: How Each Area Performed
The board-wide numbers hide real differences between areas. Within the City of London, LSTAR reported 381 sales in September, up 8.9% year over year, with 5.7 months of inventory (down from 6.0) and a median sale price of $537,000, down 6.9%.
| Area | HPI Benchmark | HPI YoY | Sales | Sales YoY | Months of Inventory |
|---|---|---|---|---|---|
| London North | $613,000 | -3.4% | 107 | -7.8% | 6.4 (5.3 last Sept) |
| London South | $550,400 | -2.7% | 164 | +19.7% | 5.4 (6.3 last Sept) |
| London East | $432,300 | -1.1% | 110 | +13.4% | 5.5 (6.4 last Sept) |
| St. Thomas | $496,800 | -6.5% | 41 | -28.1% | 5.9 (3.8 last Sept) |
London South and London East Led the Rebound
South London — home to Byron, a premium benchmark neighbourhood with high demand, and Wortley Village / Old South, a premium heritage neighbourhood — posted a 19.7% jump in sales and tightened to 5.4 months of inventory, according to LSTAR. East London, the city's value market and a hub of first-time buyer activity, had the smallest benchmark decline of any London district at -1.1% year over year, with sales up 13.4%.
North London and St. Thomas Gave Buyers More Room
North London, including Masonville and Medway, carries the highest composite benchmark of the London districts at $613,000. It was also the only London district where sales fell (-7.8%) and inventory rose, to 6.4 months (LSTAR). In St. Thomas, sales dropped 28.1% year over year and months of inventory climbed to 5.9 from 3.8, while the composite benchmark fell 6.5% to $496,800 — the largest annual benchmark decline among the areas shown here.
07
2026 Year-to-Date Results
Through the first nine months of 2026, LSTAR reported 5,256 sales, down 3.6% from the same period in 2025, and 13,563 new listings, down 1.3%. Active listings averaged 3,067 per month, up 7.9%, and year-to-date months of inventory was 5.3, compared with 4.7 a year earlier.
On price, LSTAR's year-to-date average was $619,705 (-3.9%) and the year-to-date median was $570,000 (-4.2%). Median days on market so far this year is 28, up from 24 in 2025. September's 5.3% sales gain stands out because the year as a whole is still running behind 2025.
National & Interest Rate Context
- The Bank of Canada held its policy interest rate at 2.25% on September 2, 2026. The Bank of Canada's next scheduled rate announcement is October 28, 2026.
- CREA's most recent quarterly forecast (July 15, 2026) projects national home sales of 463,336 units in 2026, down 1.4% from 2025, and a national average price of $686,710, up 1.1%.
- CREA noted Ontario is now the only province forecast to see annual sales increase in 2026 compared with 2025. For 2027, CREA forecasts national sales of 480,567 units (+3.7%) and an average price of $694,164 (+1.1%).
08
What the September Numbers Mean for Buyers and Sellers
For buyers in London and St. Thomas, September 2026 still offered plenty of choice and room to negotiate, with 5.9 months of inventory and a 96.9% sale-to-list ratio reported by LSTAR. For sellers, rising sales show buyers are active, but pricing needs to reflect the current HPI benchmark rather than last year's values.
What This Means for Buyers
- More inventory means you can compare homes and negotiate conditions, including financing and inspection.
- Townhouses and condos have seen the largest benchmark declines (LSTAR), which can create entry points for first-time buyers.
- Good homes in areas where sales are rising, like London South and London East, still sell. Have your financing pre-approved before you shop.
What This Means for Sellers
- Price to today's benchmark for your property type and area, not to what a neighbour got in 2025.
- With median days on market at 34 (LSTAR), the first two weeks matter most. Strong presentation and correct pricing at launch beat a price reduction later.
- Buyers comparing several homes notice condition. Fix the small things before photos.
Sales are coming back. The sellers who win this fall are the ones who price to today's data, not last year's market.
09
London Ontario Real Estate Market FAQ — September 2026
What is the benchmark home price in London and St. Thomas in September 2026?
According to LSTAR, the MLS® Home Price Index composite benchmark price for London and St. Thomas was $552,500 in September 2026, down 2.6% from September 2025 and down 0.2% from August 2026.
Is London Ontario a buyer's market or a seller's market right now?
LSTAR reported 5.9 months of inventory and a 34.7% sales-to-new-listings ratio in September 2026. That leans toward a buyer's market, with more choice and negotiating room for buyers, although it tightened slightly from 6.1 months of inventory in September 2025.
How many homes sold in London and St. Thomas in September 2026?
LSTAR reported 561 residential sales in September 2026, up 5.3% from September 2025. Within the City of London, sales totalled 381, up 8.9% year over year.
Which property types have dropped the most in value in London and St. Thomas?
According to LSTAR, townhouses had the largest year-over-year benchmark decline at 10.0%, to $421,500, followed by apartments at 9.6%, to $317,100. One-storey homes held up best, down only 0.5% to $541,300.
Why use the HPI benchmark price instead of the average sale price?
The MLS® Home Price Index benchmark tracks the value of a typical home with consistent features, so it is not distorted by the mix of homes that sell in a given month. In September 2026, LSTAR reported the average sale price down 1.9% while the composite benchmark was down 2.6%, showing how the average can understate or overstate real changes in value.
How did St. Thomas real estate perform in September 2026?
According to LSTAR, St. Thomas had 41 sales in September 2026, down 28.1% year over year. The composite benchmark price fell 6.5% to $496,800, and months of inventory rose to 5.9 from 3.8 in September 2025.
Have questions about the London Ontario market?
Ryan and Sandra are happy to talk — no pressure, no obligation. Every neighbourhood, price range, and property type can behave differently, and we'd be glad to show you how these numbers apply to your home search or your property.
Contact Ryan & SandraRyan Hodge & Sandra Tavares
London, Ontario Real Estate Brokers — The Realty Firm Inc., Brokerage
(519) 601-1160
ryan@therealtyfirm.ca
www.ryanhodge.ca
734 Wellington Street, London, Ontario N6A 3S2
Awards & Reviews
Data source: London and St. Thomas Association of REALTORS® (LSTAR) / Canadian Real Estate Association (CREA), September 2026 Residential Market Activity and MLS® Home Price Index Report. National context: Bank of Canada, September 2, 2026 interest rate announcement and 2026 announcement schedule; CREA quarterly resale housing forecast, July 15, 2026. Statistics are market-wide and are not a forecast, appraisal, or guarantee of future results.
