London's housing market in September: what the numbers mean for homeowners and landlords

The London and St. Thomas Association of REALTORS (LSTAR) released its September numbers on October 2. Sales picked up, typical prices barely moved, and buyers still have plenty to choose from. Here's what happened and what it means if you own a home or a rental in the London area.

September by the numbers

Sales rose from 526 in August to 561 in September. The average sale price across the LSTAR area climbed to $611,509, from $590,550 in August. That sounds like a jump, but the benchmark price, which tracks a typical home, slipped 0.2% to $552,500 and is down 1.5% since June.

The sales to new listings ratio fell to 34.7%, from 37.5% in August. CREA treats 45% to 65% as a balanced market, so September stayed below that range. LSTAR's 2026 Chair, Robin Tiller, said the market "continued to show signs of a buyers' market."

Average price and benchmark price are not the same thing

The average price moves with the mix of homes that sell. If more detached homes in London North sell one month, the average goes up even if no single home is worth more. The benchmark price (the MLS Home Price Index) adjusts for that, so it's the better gauge of what your home is worth over time.

By home type, September benchmarks were:

• Single family: $600,700, down 0.2% from August
• Two storey: $648,100, down 0.5%
• One storey: $541,300, up 0.2%
• Townhouse: $421,500, down 2.1%
• Apartment: $317,100, up 0.4%

Average prices by area in September: London North $704,858 (up from $668,345 in August), London South $608,872 (up from $567,783), London East $456,814, St. Thomas $544,865, Central Elgin $748,264 and Middlesex Centre $850,213.

Rates are on hold, inflation is sticky

The Bank of Canada kept its policy rate at 2.25% on September 2. The Bank said inflation has been hovering around 3%, mainly because of higher gasoline prices, and warned that the new US tariffs and Canada's counter tariffs could raise costs for some businesses and feed into consumer prices over time. Statistics Canada reported the Consumer Price Index up 3.0% year over year in August, the same as July.

The next rate decision is October 28. For homeowners renewing a mortgage or thinking about a home equity line for a project, that's the date to watch. Talk to your lender or mortgage broker about your own situation.

What it means for homeowners

With nearly six months of inventory and flat benchmark prices, sellers are competing for buyers. If you were planning to sell and buy something bigger, it may make sense to look at what it would cost to get the space you need where you are: a basement finish, a second bathroom, or a kitchen that works for your family.

If you do plan to sell, condition matters more in a buyer's market. Homes that show well and need no work stand out when buyers have choice. Small fixes (paint, flooring, caulking, worn fixtures, a tidy entry) are usually the ones buyers notice first.

Renovation is part of every sale, too. LSTAR points to a 2025 Altus Group study that found the average Ontario home sale generated about $124,200 in spin off spending between 2022 and 2024, including moving costs, appliances and renovations.

What it means for landlords

More homes on the market means more choice for buyers and, in many cases, more units competing for renters too. A clean, well maintained unit with working heat, sealed windows and fresh paint is easier to fill and keep filled. Fall and winter are a good time for interior work between tenants, since crews are often easier to book than in spring.

Five practical moves this fall

• Check your home's benchmark, not the headline average. Ask a local REALTOR for a comparison based on homes like yours in your area.
• Price out "improve" before "move". Get a quote for the space you need and compare it with selling costs, land transfer tax and moving.
• If you're selling, fix the small things first. Paint, flooring touch ups and worn hardware are inexpensive and visible.
• Watch October 28. If a renewal or financing decision is coming, the next Bank of Canada announcement may matter.
• Book interior work for winter. Basements, bathrooms and painting work well in the colder months, and scheduling tends to be easier.

We'll keep tracking London's market here each month. If you're weighing a renovation against a move and want a clear quote to compare, get in touch.