London Ontario Housing Market Update: July 2026 Trends

The London Ontario housing market has shifted firmly in favour of buyers this summer, and if you’ve been waiting for the right time to make a move, July 2026 might be your window.

As a London REALTOR® with Century 21, First Canadian, I track these numbers closely every month. Here’s what the latest data tells us about where the market stands right now and what it means for buyers, sellers, and investors across the London-St. Thomas region.

Key Takeaways

• The Bank of Canada held its policy rate at 2.25% on July 15, 2026, marking the fifth consecutive hold since October 2025 — keeping borrowing costs predictable for buyers.
• Home sales reached 776 transactions in May 2026, up 8.8% compared to May 2025, according to the London and St. Thomas Association of REALTORS® (LSTAR).
• The sales-to-new-listings ratio sits at 42.8%, well below the 45% threshold that defines a buyer’s market.
• Active listings climbed to 3,353 at the end of May 2026, giving buyers significantly more choice than they’ve had in years.
• The average sale price rose to $662,292 in May 2026, while the MLS® Home Price Index benchmark price held at $570,000 — down 4.4% year over year.

London Ontario Home Prices in July 2026

Price trends in London tell two different stories depending on which metric you follow.

The average sale price across the LSTAR region reached $662,292 in May 2026, a 7.1% jump from April’s $618,665 and a modest 0.9% increase from the same month last year, according to CREA statistics for the London and St. Thomas Association of REALTORS®. That average, however, can be pulled upward by a handful of higher-priced sales in any given month.

The MLS® Home Price Index (HPI) benchmark — which measures the price of a “typical” home and filters out those distortions — paints a more conservative picture. The benchmark sat at $570,000 in May 2026, down 4.4% from a year earlier but up 0.5% month over month. That’s a sign the market has found a floor after the corrections of recent years.

For context, the benchmark price was $563,000 back in March 2026, so we’re seeing slow, steady movement upward rather than sharp swings in either direction.

What’s Happening With London Real Estate Inventory

Inventory is the biggest story in London’s housing market right now.

There were 1,815 new listings added in May 2026 alone, and 3,353 active listings on the market at month’s end. That translates to roughly 4.3 months of supply — a level that gives buyers real breathing room.

For comparison, during the pandemic-era market of 2021-2022, London regularly saw less than one month of supply. Today’s conditions are a different world entirely.

Homes are also taking longer to sell. The median time on market reached 24 days in May, and properties sold for an average of 2.2% below their asking price. That’s a clear signal: buyers have leverage, and there’s room to negotiate.

London Ontario Housing Market by Property Type

Not all property types are performing equally, and that matters whether you’re buying or selling.

According to LSTAR data for the London-St. Thomas region:

• Single-family detached homes averaged $724,000, up 2% year over year. Detached properties make up the bulk of the market and continue to hold their value.
• Townhouses averaged $476,000, down 8.9% year over year. This segment has seen the sharpest correction, which creates opportunities for buyers looking for more affordable options.
• Apartments and condos averaged $358,000, down 11.3% from last year. Condo pricing has softened significantly, making this an entry point worth watching for first-time buyers and investors.

The takeaway: if you’re buying a detached home, pricing has been resilient. If you’re in the market for a townhouse or condo, your dollar stretches further now than it did 12 months ago.

Bank of Canada Rate Decision: What It Means for London Buyers

The Bank of Canada announced on July 15, 2026, that it would hold its overnight rate at 2.25% — the fifth consecutive hold since cutting rates through mid-2025. The Bank also released its quarterly Monetary Policy Report alongside the decision.

What does this mean for London buyers? Stability.

After years of rate volatility — from historic lows to rapid hikes and back down — borrowers can now plan with more confidence. Fixed and variable mortgage rates have settled into a more predictable range, and lenders are competing for business in a way they weren’t during tighter monetary cycles.

If you’re pre-approved and shopping for a home in London, this rate environment means your monthly payments are unlikely to shift dramatically in the near term. That predictability is valuable, especially for first-time buyers budgeting carefully.

New Construction and Development Activity in London

London’s growth story continues to drive new development across the city.

The Ironstone Summerside project in south London is one of the most talked-about 2026 launches, featuring modern three-bedroom stacked townhomes starting around $399,900. Designed for first-time buyers, young professionals, and investors, this community sits close to schools, shopping, parks, and Highway 401.

On the east side, a major mixed-use development at 763-773 Dundas Street in Old East Village is moving forward with support from the Ontario Priorities Housing Initiative. According to the Canada Mortgage and Housing Corporation (CMHC), the project will deliver 247 new homes — including over 40% designated as affordable units — across a 24-storey high-rise and a six-storey low-rise building.

These projects reflect London’s broader trajectory: a city that added tens of thousands of residents over the past five years and is actively building the housing to keep up. According to Statistics Canada’s 2021 Census, London’s population exceeded 422,000, and growth has continued at a strong pace since.

FAQ: London Ontario Housing Market July 2026

Is London Ontario a buyer’s market right now?

Yes. With a sales-to-new-listings ratio of 42.8% and 4.3 months of inventory as of May 2026, London is firmly in buyer’s market territory. Buyers have more selection and more negotiating power than they’ve had in several years.

Are home prices dropping in London Ontario?

It depends on the property type. The overall MLS® HPI benchmark price is down 4.4% year over year, and townhouses and condos have seen larger declines. Single-family detached homes, however, have held steady with a 2% year-over-year increase. The market appears to have stabilized rather than continuing to decline.

What is the average home price in London Ontario in 2026?

The average sale price in the LSTAR region was $662,292 in May 2026, according to the London and St. Thomas Association of REALTORS®. The MLS® HPI benchmark price for a typical home was $570,000.

How long are homes taking to sell in London Ontario?

The median days on market reached 24 in May 2026, and homes sold for an average of 2.2% below asking price. This is a significant change from the fast-paced markets of recent years when homes often sold within days above asking.

Will interest rates go down again in 2026?

The Bank of Canada has held its policy rate at 2.25% since October 2025. Future decisions depend on inflation data and economic conditions. For the latest rate information, consult the Bank of Canada’s official announcements or speak with your mortgage professional.

What This Market Means for You

Whether you’re buying, selling, or investing in London real estate, this market rewards preparation. Buyers have the advantage of more inventory and negotiating room. Sellers who price accurately and present their homes well are still achieving strong results — especially in the detached segment. And investors looking at the condo and townhouse market are finding entry points that weren’t available a year ago.

If you have questions about what these trends mean for your specific situation in London, Woodstock, Tillsonburg, or anywhere across Middlesex County, I’d love to help. Call me at (647) 883-7135 or visit 519propertyfinder.com/contact to schedule a free consultation.

Gloria Roman is a London REALTOR® with Century 21, First Canadian, and a Master Certified Negotiation Expert (MCNE) serving buyers, sellers, and investors across London, Woodstock, Tillsonburg, Ingersoll, and the wider Middlesex County.