TL;DR
- London house prices are not rising right now: the September 2026 median was $540,000, about 6.6% lower than a year earlier.
- About 2,100 homes were for sale on October 1, 2026, roughly 5.5 months of inventory, which gives buyers room to negotiate.
- Fixed mortgage rates rose in late September 2026, which also keeps a lid on prices.
- Expect prices to stay close to flat over the next few months, with condos and high-inventory areas like Lambeth the softest.
House prices in London, Ontario are not rising right now. The median sale price was $540,000 in September 2026, about 6.6% lower than a year earlier, and every month this summer came in 5% to 9% below the same month in 2025. Prices have eased gently rather than fallen sharply, and how a home is priced matters more than ever.
What Are House Prices Doing in London, Ontario Right Now?
Prices have softened year over year while holding fairly steady month to month. The typical home has sold for between about $540,000 and $550,000 in each of the last three months.
| Month | Median sale price 2026 | Same month 2025 | Change |
|---|---|---|---|
| July | $549,450 | $605,000 | -9.2% |
| August | $550,000 | $580,000 | -5.2% |
| September | $540,000 | $578,093 | -6.6% |
Source: MLS® residential sales for London East, London North and London South from the London and St. Thomas Association of REALTORS® (LSTAR) board feed, counted by firm (sold) date. September figures are early and may rise slightly as late sales are reported.
The month-by-month picture is in our September 2026 market update.
Why Aren't Prices Going Up?
There are more homes for sale than buyers need. As of October 1, 2026 London had about 2,100 homes for sale, roughly 5.5 months of inventory at the current pace of sales. Under about 3 months usually pushes prices up, so 5.5 months gives buyers time and room to negotiate.
Borrowing costs are also moving the wrong way for buyers. Fixed mortgage rates follow the 5-year Government of Canada bond yield, and that yield reached a 52-week high near 3.73% in late September 2026. Several lenders, including CIBC and TD, raised their fixed rates in response, according to Canadian Mortgage Trends. Higher rates shrink what buyers can qualify for, which keeps a lid on prices.
What I'm seeing on the ground matches the numbers: buyers are paying fair value and not much more. In September, homes sold for about 96.9% of their final list price but only 95% of their original list price, so most of the negotiating happens through price reductions before a sale.
Are Some Homes Holding Their Value Better Than Others?
Yes. Detached homes are holding up better than condos. Detached homes have about 5 months of inventory and still draw competition when they're priced well, with 12% selling over asking in September. Condos have about 6.5 months of inventory, only 7% sold over asking, and a quarter of active condo listings have already had a price reduction.
Location matters too. West London neighbourhoods like Oakridge, with about 3 months of inventory, stay tighter than the city as a whole, while Lambeth, with over 11 months of inventory, gives buyers far more choice.
What Could Push London Prices Back Up?
The long-term drivers of London's housing demand haven't gone away. The city keeps growing, with population growth driven largely by immigration, and it remains far more affordable than the Greater Toronto Area. Western University and London Health Sciences Centre anchor a steady local economy.
In the shorter term, prices would most likely firm up if mortgage rates ease again or if the number of homes for sale falls back toward 3 to 4 months of inventory. Neither is happening yet as of October 2026, so I'd expect prices to stay close to flat, with some softening in condos and in areas with a lot of supply, over the next few months.
Should You Wait for Prices to Drop Before Buying?
Usually not. Nobody can reliably time the bottom of a market. Today's market gives prepared buyers real advantages: more choice, less competition, and room to negotiate, especially on condos and on homes that have been listed for a few weeks.
The buyers who do best are the ones who buy when they're financially ready, with a rate hold in place, rather than waiting for a perfect market. See our interest rates analysis for how rate changes affect what you can afford.
What Should Sellers Do in This Market?
Price for today's market from the first day. Homes that start at the right price sell close to asking. Homes that start high usually end up selling for less after sitting and taking a reduction or two. Want to know what your home would realistically sell for right now? Get a complimentary home evaluation. Thinking about buying? Learn about my buyer process.
Frequently Asked Questions
Will house prices go up in London Ontario in 2026?
Probably not by much in the near term. As of October 2026, London has about 5.5 months of inventory and fixed mortgage rates rose in late September, so prices are more likely to stay close to flat, with some softening in condos, than to rise over the next few months.
Are house prices dropping in London Ontario?
Prices have eased gently. The median sale price in London was $540,000 in September 2026, about 6.6% lower than a year earlier, and July and August were 9.2% and 5.2% lower than in 2025. Month to month, prices have held fairly steady between about $540,000 and $550,000.
What is the average home price in London Ontario right now?
The median sale price in London, Ontario was $540,000 in September 2026. Detached homes had a median of about $610,000 and condos about $437,000.
Is London Ontario real estate a good long-term investment?
London has strong long-term fundamentals, including steady population growth, a diversified economy anchored by Western University and London Health Sciences Centre, and lower prices than the Greater Toronto Area. Short-term prices can soften, as they have in 2026, so results depend on buying when you are financially ready and choosing the right neighbourhood and property.
Should I wait for prices to drop before buying in London Ontario?
Usually not. Nobody can reliably time the bottom, and the current market already gives buyers more choice and room to negotiate. Buying when you are financially ready, with a mortgage rate hold in place, tends to work out better than waiting for a perfect moment.
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Justin Skrypnyk
Real Estate Broker | Sutton Group Chapman Realty Inc., Brokerage | Oakridge, London Ontario
Justin Skrypnyk is a Real Estate Broker serving Oakridge and West London. He writes regularly about the London Ontario market to help buyers and sellers make well-informed decisions.