London Real Estate Market Report

In August, 526 homes changed hands via the Multiple Listing Service® (MLS®) of the London and St. Thomas Association of REALTORS® (LSTAR), and inventory reached a new peak, with 6.3 months of inventory recorded. “Historically, we have seen slower sales activity in the summer, but the August numbers are on par with activity over the past four years,” said Robin Tiller, LSTAR’s 2026 Chair. “The August sales-to-new listings ratio was 37.5%, down from July, which came in at 44.5%. According to the Canadian Real Estate Association (CREA), a ratio between 45% and 65% indicates conditions of a balanced market. The activity in August showed signs of a buyers’ market.” This was evident with average sales price, which was $590,550. This represents the average price across all LSTAR regions. Notably, two areas showed increases in average sales price, month over month. In London East, the August average sales price was $489,735, up from the July average sales price of $456,416. In St. Thomas, the August average sales price was $557,485, up from the previous month, which was $500,819. “We know that housing affordability will be one of the top issues in the 2026 municipal elections,” Tiller said. “Brand new research from the Ontario Real Estate Association (OREA) finds people across the province want candidates to prioritize solving the housing affordability crisis. The research also showed support for policies that speed up the delivery of new housing, including streamlining development approvals and making more housing options available, which ultimately impact affordability.” Check out the full survey report, conducted by Abacus Data, which OREA released on Sept. 1, 2026. The HPI benchmark price reflects the value of a “typical home” as assigned by buyers in a certain area based on various housing attributes, while the average sales price is calculated by adding all the sale prices for homes sold and dividing that total by the number of homes sold. The HPI benchmark price is helpful to gauge trends over time since averages may fluctuate by changes in the mix of sales activity from one month to the next. According to a 2025 study by Altus Group, the average housing transaction in Ontario generated approximately $124,200 in spin-off spending per transaction, between 2022 to 2024. These include such expenses as legal fees, appraisers, moving costs, new appliances, and home renovation expenses. “In August, that translates into generating around $65 million across the region,” Tiller said. Employment resulting from home sales is also significant, according to the Altus study. Resale housing activity created an estimated 117,610 jobs annually in Ontario from 2022 to 2024. Jobs include manufacturing, construction, skilled trades, finance, and insurance. Download the full release pdf here. [1] Economic Benefits Generated by Home Sales and Purchases Over MLS® Systems Across Canada, Altus Group, 2025