London Ontario's Housing Supply Just Tripled: What July 2026 Means for Buyers and Sellers

One number changed more than any other in London's housing market this summer, and it's not one most buyers or sellers watch closely: months of supply. It sat in a tight 2.3-to-2.9 range for most of the past year — then jumped to 7.3 in July 2026. That's the difference between a seller's market and a buyer's market, and it happened in a single month.

What Is "Months of Supply" and Why It Matters

Months of supply (also called absorption rate) answers a simple question: at the current pace of sales, how long would it take to sell off every home currently listed? Real estate professionals generally read it like this:

Months of Supply	Market Condition
Under 4 months	Seller's market — demand outpaces supply
4 to 6 months	Balanced market
Over 6 months	Buyer's market — supply outpaces demand

A Full Year of Data: August 2025 to July 2026

Month	Months of Supply	Median Days to Sell
Aug 2025	2.9	27
Sep 2025	3.3	28
Oct 2025	2.9	29
Nov 2025	3.3	30
Dec 2025	4.2	43
Jan 2026	4.3	40
Feb 2026	3.9	29
Mar 2026	2.7	27
Apr 2026	2.9	24
May 2026	2.3	22
Jun 2026	2.5	25
Jul 2026	7.3	28

Source: PropTx Innovations Inc. MLS® data, covering London East, London North, and London South (Middlesex), calculated from approximately 67,000 listings.

The Big Story: What Happened in July 2026

From August 2025 through June 2026, London held firmly in seller's-market territory — months of supply never climbed above 4.3, and it spent the spring of 2026 as low as 2.3 to 2.5. Then July arrived and supply jumped to 7.3 months, crossing well past the 6-month line into buyer's-market conditions. That's roughly a tripling of available supply relative to the pace of sales, in a single month.

Notice what didn't move much: the median days to sell only ticked up from 25 in June to 28 in July. That gap — supply surging while days-on-market barely budged — is a signature of a market in transition. It typically means a wave of new listings hit at once, faster than buyers could absorb them, rather than buyers suddenly disappearing. The homes already under contract or about to sell haven't felt it yet; the shift shows up first in the supply numbers, before it shows up in how long homes sit.

Why This Matters If You're Selling

A jump from 2.5 to 7.3 months of supply means meaningfully more competition for buyer attention than sellers faced all spring. This is exactly the environment where accurate pricing stops being optional — with three times the inventory competing for the same buyers, a home priced even slightly ahead of the market is far more likely to sit, and eventually get pulled, than it would have in May's tighter conditions.

It doesn't mean don't sell. It means price to where the market actually is today, not to where it was in May.

Why This Matters If You're Buying

For buyers, this is the most leverage London has offered in a year. More active inventory means more choice, less urgency to overbid, and more room to negotiate on price, closing terms, or conditions. If you've been priced out of multiple-offer situations over the past year, July's numbers suggest that pressure has eased considerably, at least for now.

Whether that holds into fall or proves to be a one-month spike is the thing to watch. One month of data is a signal worth taking seriously; it isn't yet a confirmed new trend.

How Does This Fit With the Rest of 2026?

This lines up with — and sharpens — the story from our Best Time to List post: spring 2026 was London's tightest, fastest-moving window of the past year, and conditions have been loosening since. July's supply spike is the clearest evidence yet of how far that loosening has gone. For the neighbourhood-level picture, see our June 2026 market update, which showed Oakridge holding a 19-day median time on market even as the citywide market slowed.

Thinking about what this means for your specific plans to buy or sell? Request a complimentary home evaluation for pricing guidance that reflects exactly where the market stands today.