London & St. Thomas Real Estate Market Update – May 2026
London Real Estate Market Continues to Gain Momentum in May 2026
The London and St. Thomas real estate market continued its steady recovery in May 2026, with home sales climbing for the fifth consecutive month and average home prices posting significant gains across much of the region.
According to the latest data released by the London and St. Thomas Association of REALTORS® (LSTAR), a total of 776 homes changed hands in May, representing an 8.8% increase compared to April 2026. Sales activity increased by 138 transactions month over month, providing further evidence that buyers are becoming more active as the market moves into the busy summer season.
A Positive Sign for Buyers and Sellers
While the market remains favourable for buyers compared with the highly competitive conditions of the pandemic years, May’s numbers suggest conditions are gradually becoming more balanced.
“The steady increase in sales activity throughout 2026 shows that buyers are regaining confidence and becoming more comfortable entering the market,” said Stewart Blair, Broker and Partner with Elevate Real Estate Group. “Interest rates have stabilized, inventory remains healthy, and buyers have more options than we’ve seen in years. For many households, this is creating opportunities that simply didn’t exist during the highly competitive markets of 2021 and 2022.”
Average Home Prices Jump Higher
Average sale prices increased across the region in May.
The overall average home price across the LSTAR market reached $662,292, up significantly from $618,665 in April.
Some of the strongest month-over-month gains occurred in:
London South
- April Average Price: $626,840
- May Average Price: $677,226
- Increase: $50,386
London East
- April Average Price: $450,793
- May Average Price: $476,844
- Increase: $26,051
While average prices can fluctuate based on the mix of homes sold during a given month, the increases suggest demand remains strong in several key segments of the market.
Inventory Levels Begin to Stabilize
One of the most encouraging signs for the market was the improvement in inventory levels.
The sales-to-new listings ratio increased to 42.8% in May, up from 36% in April.
Although this remains slightly below the 45%-65% range that the Canadian Real Estate Association considers a balanced market, the improvement indicates that buyers are absorbing more of the available inventory.
Months of inventory also improved:
- April 2026: 5.0 months
- May 2026: 4.3 months
This means available listings are being purchased more quickly than earlier in the spring market.
Benchmark Prices Show Stability
The MLS® Home Price Index (HPI), which tracks the value of a typical home over time, showed continued stability across most property types.
LSTAR Benchmark Price Changes
| Property Type | May 2026 Benchmark | Change from April |
|---|---|---|
| Composite | $570,000 | +0.5% |
| Single Family | $623,700 | +0.3% |
| One Storey | $563,800 | +0.1% |
| Two Storey | $672,100 | +0.4% |
| Townhouse | $438,900 | -2.3% |
| Apartment | $342,000 | +4.1% |
Apartments posted the strongest gains, while townhouse values experienced modest declines.
Local Market Highlights
Middlesex Centre Remains a Premium Market
Middlesex Centre continued to command some of the highest prices in the region.
- HPI Benchmark Price: $788,200
- Average Sale Price: $1,115,644
Strong demand for communities such as Kilworth, Komoka, Delaware, and Ilderton continues to drive interest among buyers seeking larger homes and more space outside the city.
St. Thomas Continues to Attract Buyers
St. Thomas remains one of Southwestern Ontario’s most closely watched markets.
- HPI Benchmark Price: $524,900
- Average Sale Price: $568,008
The city’s ongoing economic growth and major manufacturing investments continue to attract both homeowners and investors.
What Does This Mean for Buyers?
Today’s market remains significantly more balanced than in recent years.
Buyers can still benefit from:
- More available listings
- Greater negotiating power
- Financing and inspection conditions
- Reduced competition compared to previous market peaks
However, improving sales activity may signal that the strongest buyer opportunities could begin to narrow if inventory continues to tighten through the summer months.
What Does This Mean for Sellers?
For sellers, the market remains active, but pricing strategy is critical.
Homes that are well-presented, properly priced, and professionally marketed continue to attract strong interest. Sellers who understand current market conditions are seeing successful outcomes, particularly in highly desirable neighbourhoods and communities.
Looking Ahead
As we move into the summer market, key indicators suggest a healthier, more active real estate environment than many expected at the beginning of the year.
Sales are increasing, inventory is stabilizing, and benchmark prices remain steady across most housing types.
For both buyers and sellers, local market knowledge has never been more important.
If you’re considering buying or selling in London, St. Thomas, Middlesex Centre, Strathroy, Lucan, Port Stanley, or surrounding communities, the Elevate Real Estate Group is here to help.
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