Housing Prices: Stabilizing After the Post-Pandemic Peak
Home prices across the London–St. Thomas region, which includes Middlesex and Elgin counties, have moderated from their pandemic-era highs. As of early 2026, the benchmark home price in London sits at approximately $561,600, with an average selling price around $622,414 depending on the month and mix of homes sold. This represents a significant shift from the market peak in early 2022, when the average home price reached roughly $825,000. Since then, prices have declined by more than 20%, reflecting higher interest rates and reduced buyer demand. Recent data from late 2025 shows the average home price in the larger London–St. Thomas market at $614,104, which is about 3.6% lower year-over-year.
Benchmark prices vary across communities in Middlesex and Elgin counties:
- Middlesex Centre: $759,700
- London North: $620,600
- London South: $560,500
- St. Thomas: $526,800
- Strathroy-Caradoc: $739,200
The region remains relatively affordable compared to other Canadian markets. The London area benchmark price is nearly $100,000 below the national benchmark, making it attractive to buyers relocating from more expensive markets like Toronto.
Inventory Levels: A Major Shift in Supply
Perhaps the most significant change in the local housing market is the increase in available inventory. By late 2025, the London–St. Thomas market had roughly 2,167 active listings and about 5.4 months of inventory, meaning it would take over five months to sell all homes currently on the market at the current pace of sales. More recent updates suggest supply has climbed even further, reaching 6.6 months of inventory in early 2026, representing the highest level seen in nearly a decade.
In real estate, months of inventory is a key indicator of market conditions. 0–4 months of inventory indicates a seller’s market. 4-5 months of inventory is indicative of a balanced market. If there is over 5 months of inventory, it is a buyer’s market.
With inventory levels consistently above five months, the Middlesex–Elgin housing market has clearly shifted in favour of buyers. Higher supply means buyers now have more properties to choose from, less competition, fewer bidding wars, and greater negotiating power on price and conditions. During the pandemic boom of 2020–2022, many homes sold within days and often received multiple offers. Today, that environment has changed considerably.
Sales Activity and Market Pace
Sales activity has also slowed across the region. For example, only 398 homes sold in December 2025, representing a 5.5% decline compared with the previous year and a 19% drop from the prior month. At the same time, new listings continued to enter the market at a steady pace. In December 2025 alone, 556 new listings were added. This imbalance between supply and demand is a major reason the market has softened.
Another useful metric is the sales-to-list-price ratio, which measures how close homes sell to their asking price. In late 2025, homes in the London region sold for an average of 96.4% of their list price, meaning sellers typically accepted offers about 3–4% below asking.
Homes are also taking longer to sell. The median time on market has increased to about 43 days, compared with the rapid sales of one week or less typical during the pandemic surge.
Differences Across Property Types
Different types of housing have been affected in varying ways. In London and surrounding communities detached homes sell for $665,000 on average, townhouses for $490,000 and condo apartments for about $328,000. Condominiums have experienced the steepest price declines, dropping more than 22% year-over-year. This reflects shifting buyer preferences and affordability constraints. Many first-time buyers are still drawn to entry-level homes and townhouses, while demand for condos has softened.
Outlook for 2026
Looking ahead, the housing markets in Middlesex and Elgin counties are expected to remain relatively stable through 2026. Several factors could influence future trends including interest rate movements from the Bank of Canada, population growth and migration to mid-sized cities, new housing construction and supply, and economic conditions affecting buyer confidence.
The likely short-term scenario is a more balanced and sustainable market, a sharp contrast to the extreme volatility seen during the pandemic housing boom. For buyers, this environment presents opportunities to enter the market with less competition. For sellers, strategic pricing and realistic expectations will be key to navigating the evolving real estate landscape
If you are considering buying or selling a home in Middlesex or Elgin, don’t hesitate to reach out to Graham Beatty at gbeatty@thriverealtygroup.ca. As a licensed real estate professional, Graham can help you with all your real estate needs!