London, Ontario Housing Market Update: October 2026

London's housing market held steady in October, with home sales nearly matching September's pace even as prices eased from their summer peak. The London and St. Thomas Association of REALTORS® (LSTAR) recorded 557 home sales across the region in October 2026, just below September's 561, and described the conditions as showing "signs of a buyers' market." If you're weighing a move in London, Ontario this fall, here's what the numbers actually mean for you.

I'm Gloria Roman, a REALTOR® with Century 21, First Canadian, and I track these releases every month so my clients in London and across Middlesex County always know where the market stands before they make a decision.

Key Takeaways

• LSTAR recorded 557 home sales in October 2026, down 7.5% from October 2025 but essentially flat compared to September's 561.
• The City of London's average sale price was $596,951 in October, up slightly from $591,927 in September.
• The LSTAR MLS® Home Price Index composite benchmark was $538,000, down 4.0% month-over-month and 4.8% since July 2026.
• The sales-to-new-listings ratio rose to 39% in October from 34.7% in September — still favouring buyers, but less so than in late summer.
• The Bank of Canada's overnight policy rate has held at 2.25% since its September 2, 2026 announcement, giving buyers and sellers a stable borrowing environment to plan around.

October Sales and Prices in London, Ontario

October's 557 sales kept London in line with the pace of the last several Octobers, according to LSTAR, even though that total was down 7.5% from the same month in 2025. For context, September saw 561 sales — so the month-to-month shift was negligible, which is typically a sign that a market is finding its footing rather than swinging sharply in either direction.

Within the City of London specifically, the average sale price ticked up to $596,951 in October from $591,927 in September. That's a modest increase, but it's worth reading alongside the regional average sale price, which covers London and the surrounding LSTAR territory and actually fell to $601,289 from $611,509 the month before. Averages like these are pulled around by whichever homes happen to sell in a given month — a few more (or fewer) higher-end detached sales can move the number without reflecting a real shift in value.

That's why LSTAR's own benchmark price, which adjusts for the mix of homes sold, is the more reliable gauge. The composite MLS® Home Price Index benchmark sat at $538,000 in October, down 4.0% from September and 4.8% from its July 2026 level. In plain terms: typical home values across London have softened modestly since midsummer, even in months where the average sale price moved the other way.

Benchmark Prices by Home Type

LSTAR's October release broke the benchmark down by housing type, and the declines weren't evenly spread:

• Single-family detached homes: down 5.1% month-over-month
• Two-storey homes: down 4.9%
• Apartment-style condos: down 5.7%
• One-storey homes: down 2.7%
• Townhouses: down 0.9% — the most stable category

Townhouses holding closer to flat while detached and apartment benchmarks pulled back further is consistent with what I've been seeing in person this fall: buyers are still active, but they're gravitating toward the price points and property types that feel most affordable right now, and that's keeping townhouse values firmer than the rest of the market.

A Buyers' Market, But Not a Dramatic One

LSTAR's 2026 Chair, Robin Tiller, described October's conditions directly: "We're observing signs of a buyers' market." The clearest evidence is the sales-to-new-listings ratio, which climbed to 39% in October from 34.7% in September. A lower ratio generally means more choice and more negotiating room for buyers relative to how much is selling; a ratio climbing back toward 40% suggests that gap narrowed slightly in October without disappearing.

Tiller also pointed to the broader economic footprint of these transactions, noting that October's sales activity translates into "potentially generating more than $69 million into the local economy" — a reminder that every closed sale in London ripples out into moving companies, renovators, legal fees, and local retailers.

Borrowing costs have stayed out of the headlines lately, which is its own kind of news. The Bank of Canada held its overnight policy rate at 2.25% at its September 2, 2026 announcement, continuing a run of holds through 2026. A steady policy rate won't move your mortgage rate on its own, but it does mean buyers budgeting for a purchase this fall aren't contending with the kind of rate volatility that made planning difficult in prior years.

What This Means If You're Buying in London

If you've been waiting for a window with more selection and less competition, October's numbers suggest that window is still open, if not quite as wide as it was in August. A 39% sales-to-new-listings ratio still leaves meaningful room to negotiate on price, closing dates, or conditions — particularly on detached and condo-apartment listings, where benchmark values have softened the most. Townhouses are holding their value better, so if you're specifically house-hunting in that category, expect less flexibility on price than you might find elsewhere.

What This Means If You're Selling in London

Pricing accurately matters more in a market like this one than it does when everything is selling in days. The gap between October's average sale price ($596,951) and the composite benchmark ($538,000) is a useful reminder that averages can mask what's really happening street by street and home by home. A pricing strategy built around your specific neighbourhood's recent benchmark trend, not a city-wide average, is going to serve you better heading into the winter months. I'd rather walk you through exactly what's happened on your street before you list than have you anchor to a number that doesn't reflect your home.

Frequently Asked Questions About London's October 2026 Market

Is London, Ontario a buyers' market right now?

LSTAR's own October release describes current conditions as showing signs of a buyers' market, based on a sales-to-new-listings ratio of 39%. That gives buyers more negotiating room than in a tight seller's market, though the shift from September is incremental rather than dramatic.

Did home prices go down in London in October 2026?

It depends on the measure. The City of London's average sale price rose slightly to $596,951. But LSTAR's benchmark price — which better reflects typical home values — fell 4.0% month-over-month to $538,000, with detached and apartment-style homes seeing the largest declines.

How many homes sold in London, Ontario in October 2026?

LSTAR recorded 557 home sales across the London region in October 2026, down 7.5% from October 2025 but close to September's 561 sales.

What is the Bank of Canada's interest rate right now?

As of the Bank of Canada's September 2, 2026 announcement, the overnight policy rate held at 2.25%. Buyers should always confirm the current rate and their own mortgage pre-approval terms with a licensed mortgage professional before making an offer.

Is now a good time to sell my home in London, Ontario?

It depends heavily on your property type and neighbourhood. Townhouses have held value better than detached homes and condos in recent months. The best way to know what your specific home would fetch is a current comparative market analysis rather than relying on city-wide averages.

Thinking About Your Next Move in London?

October's numbers tell a market that's stable rather than dramatic: sales holding close to September's pace, prices softening modestly from summer highs, and a bit more breathing room for buyers than there was a few months ago. Whether that's good news or something to watch closely depends entirely on what you're trying to do — buy your first home, upsize, downsize, or sell into a market that's shifted since you last checked.

I'd be glad to walk you through what these numbers mean for your specific street, price range, or timeline. Schedule a free consultation with me, Gloria Roman at Century 21, First Canadian, and let's talk through your options for London's current market. You can also reach me directly at (647) 883-7135 or romanofrealestate@gmail.com, or visit 519propertyfinder.com to see current London-area listings.