London, Ontario Real Estate Market Update – February 2026
Home Prices Hold Steady as Sales Begin to Rebound
The London and St. Thomas real estate markets showed early signs of stabilization in February, with sales activity picking up from January and home prices remaining relatively steady across most segments. Elevate takes a look at the numbers and gives a Real Estate Market Update – February 2026.
A total of 410 homes sold in February 2026 through the London and St. Thomas Association of REALTORS® (LSTAR) MLS® System. While that figure is down 18.7% from February 2025, it marks a meaningful increase from January’s 341 sales.
At Elevate Real Estate Group, we see this as a signal worth watching.
“We’re starting to see activity return to the market after a cautious start to the year,” says Stewart Blair of Elevate Real Estate Group. “There is clearly pent-up demand in London and the surrounding communities. Buyers have been waiting for clarity on interest rates, and sellers are adjusting expectations. That combination is bringing more balance into the marketplace.”
London, Ontario Real Estate Market Update – February 2026
Average Home Prices in London, Ontario – February 2026
The average home price in the LSTAR region was $622,414, down 3.5% from February 2025 and nearly identical to January’s average of $624,550.
That stability matters.
While year-over-year comparisons show modest softening, month-over-month pricing suggests the market may be finding its footing.
It’s also important to understand the difference between:
- Average price – influenced by the mix of homes sold (for example, more high-end homes selling will push averages up)
- MLS® HPI Benchmark Price – reflects the value of a “typical” home and provides a clearer view of price trends
The LSTAR Composite Benchmark Price in February was $561,600, up 0.6% from January and up 0.3% from November 2025.
That tells us prices are not collapsing, they are stabilizing.
February 2026 Benchmark Prices by Housing Type
| Housing Type | Benchmark Price | Change vs January | Change vs November |
| Composite | $561,600 | ↑ 0.6% | ↑ 0.3% |
| Single-Family | $617,000 | ↑ 0.5% | ↑ 0.6% |
| One-Storey | $553,400 | ↑ 1.3% | ↑ 1.6% |
| Two-Storey | $669,000 | ↓ 0.1% | ↓ 0.1% |
| Townhouse | $450,400 | ↑ 0.5% | ↓ 1.9% |
| Apartment | $327,500 | ↑ 1.6% | ↓ 0.7% |
The strongest short-term movement continues to be seen in:
- One-storey homes (popular with downsizers)
- Apartment-style properties (more affordable entry points)
- Entry-level product under $500,000
This aligns with what we are seeing on the ground: affordability remains the key driver of activity.
Average Prices by Area – February 2026
Here’s how different communities across London and the surrounding areas performed:
| Area | Benchmark Price | Average Price |
| Central Elgin | $658,700 | $586,250 |
| London East | $435,800 | $471,655 |
| London North | $620,600 | $748,716 |
| London South | $560,500 | $617,817 |
| Middlesex Centre | $759,700 | $947,278 |
| St. Thomas | $526,800 | $545,876 |
| Strathroy-Caradoc | $739,200 | $716,384 |
| LSTAR Overall | $561,600 | $622,414 |
Middlesex Centre and London North continue to show strength in average pricing, largely driven by larger homes and higher-end transactions.
Meanwhile, London East and St. Thomas remain attractive entry points for first-time buyers and investors.
Average Prices Across Canada
The February 2026 MLS® Home Price Index benchmark chart places London, Ontario, at $561,600, firmly in the mid-range among major Canadian housing markets. London remains significantly more affordable than Greater Vancouver ($1.1M), the Greater Toronto Area (over $1M), Fraser Valley, and Victoria, yet it sits above markets such as Saskatoon, Edmonton, Winnipeg, and St. John’s. Compared to the national benchmark price of $661,300, London homes are roughly $100,000 below the Canadian average — a meaningful affordability advantage.
Within Ontario, London also remains more accessible than centres such as Hamilton-Burlington, Guelph, and Oakville-Milton, reinforcing its appeal for buyers seeking relative value without leaving Southwestern Ontario. For move-up buyers, first-time purchasers, and investors, London remains a balanced market, offering urban amenities, strong employment anchors, and nationally competitive housing prices.
What This Means for Buyers and Sellers in London, Ontario
At Elevate, we believe the market is transitioning into a more balanced phase.
“This isn’t the frenzy of 2021, and it’s not a collapse either,” says Blair. “It’s a normalization. Serious buyers are back in the market, and well-prepared sellers are still achieving strong results when properties are priced correctly.”
With the Bank of Canada’s next rate announcement scheduled for March 18, many buyers are closely watching borrowing costs. Even small rate adjustments can meaningfully impact purchasing power and confidence.
The Economic Impact of Real Estate in London
Beyond individual transactions, the housing market remains a major economic engine.
Did you know that each home sale in Ontario generated an average of $124,200 in additional economic spin-off spending between 2022 and 2024? That includes:
- Legal services
- Mortgage financing
- Appraisals
- Moving costs
- Renovations
- Appliances and furnishings
Based on February’s 410 sales, that represents more than $50 million injected into the local and provincial economy in a single month.
“Real estate isn’t just about buying and selling homes,” says Elevate Real Estate Group. “It supports trades, contractors, financial services, retail businesses, and hundreds of local jobs. A healthy housing market benefits the entire London community.”
The same Altus study estimates resale housing activity supports more than 117,000 jobs annually across Ontario.
Outlook for Spring 2026
Historically, the London real estate market gains momentum as we move into March, April, and May.
Key factors to watch:
- Bank of Canada interest rate decisions
- Inventory levels heading into spring
- Consumer confidence
- New listing activity
If sales volume continues to climb while benchmark prices remain steady, we could see a more active yet measured spring market.
Thinking of Buying or Selling in London, Ontario?
Whether you’re:
- Upsizing
- Downsizing
- Investing
- Entering the market for the first time
- Or considering selling before making your next move
The strategy matters more than ever in this environment.
At Elevate Real Estate Group, we provide data-driven pricing guidance, marketing strategies tailored to today’s buyer behaviour, and local insight across London, St. Thomas, Strathroy, and Middlesex County.
If you’d like a personalized market update or home value review, we’re always happy to help.
Elevate Real Estate Group
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