London's Housing Inventory Just Hit a New High. Here's What That Actually Means

What LSTAR Reported

The London and St. Thomas Association of REALTORS titled its own August release 'Housing Inventory Hits New High' — not subtle, and not wrong.

According to LSTAR's published statistics, 526 homes changed hands across the London and St. Thomas market area in August, and inventory closed the month at 6.3 months of supply — the highest level the board has recorded. “Historically, we have seen slower sales activity in the summer, but the August numbers are on par with activity over the past four years,” said LSTAR's 2026 chair, Robin Tiller, in the board's release.

The sales-to-new-listings ratio, which measures how much of what's listed is actually selling, came in at 37.5% for August, down from 44.5% in July. The Canadian Real Estate Association generally treats a ratio between 45% and 65% as consistent with a balanced market. Below that points toward conditions favouring buyers, which is exactly how Tiller characterized it: “The activity in August showed signs of a buyers' market.”

One Average Price, Several Different Stories Underneath It

The average sales price across all LSTAR regions was $590,550 in August. That is an average across the whole coverage area, and LSTAR's own release flags why it can be misleading taken on its own: two sub-areas actually moved higher month-over-month even as the overall market leaned toward buyers.

In London East, the August average price was $489,735, up from $456,416 in July. In St. Thomas, it was $557,485, up from $500,819. Both are increases in the average sales price specifically — which reflects the mix of what sold that month, and can move for reasons that have nothing to do with the underlying value of any one property. LSTAR distinguishes this from its benchmark price, a separate measure designed to track a 'typical home' over time without being skewed by which properties happened to sell.

The takeaway isn't that London East or St. Thomas are suddenly hot while the rest of the market cools. It's that an area-wide average, in either direction, tells you less about your specific street than a local comparison would.

The Affordability Backdrop

LSTAR tied its release to a wider conversation: “We know that housing affordability will be one of the top issues in the 2026 municipal elections,” Tiller said, pointing to new research from the Ontario Real Estate Association, conducted by Abacus Data and released September 1, showing broad public support for policies that speed up housing approvals and expand housing options.

LSTAR also cited a 2025 Altus Group study estimating that the average Ontario housing transaction generates roughly $124,200 in spin-off spending — legal fees, appraisals, moving costs, renovations and the like. Applied to August's 526 sales, Tiller put that at approximately $65 million circulating through the London-area economy in a single month, separate from the value of the homes themselves.

What This Means If You're Buying or Selling in London

For a buyer, 6.3 months of supply and a sub-45% sales-to-listings ratio both point the same direction: more room to negotiate, and less pressure to waive conditions to compete. That does not mean every property is priced to move — a well-priced home in a sought-after pocket of London East can still draw competing offers even in a market like this.

For a seller, this is a market where pricing against the current comparables in your specific area, not last spring's numbers or the region-wide average, matters more than it did two years ago. A property sitting for weeks with no showings is usually a pricing signal in a market carrying this much inventory.

Either way, what a purchase actually costs to close and to carry depends on your own numbers. Our mortgage calculators cover purchase payment, closing costs and land transfer tax specific to Ontario, and if you're buying your first home in the area, First Home Hub covers the down payment rules and regional assistance programs that apply in southwestern Ontario.