October Market Watch

by Sam Dabbagh

Housing Sales Remain Steady in October

London, ON – In October, 557 homes changed hands via the Multiple Listing Service® (MLS®) of the London and St. Thomas Association of REALTORS® (LSTAR), nearly identical to the 561 sales in September. Although down 7.5% compared to October 2025, the sales were on par with activity recorded over the past four years.

“We continue to monitor the sales-to-new listings ratio, which was 39% in October, a little higher than the September sales-to-new listing ratio of 34.7%,” said Robin Tiller, LSTAR’s 2026 Chair. According to the Canadian Real Estate Association (CREA), a ratio between 45% and 65% indicates conditions of a balanced market. “We’re observing signs of a buyers’ market, so it may be an opportune time for those looking to get into the marketplace, especially with the Bank of Canada raising its policy interest rate last week.”

The overall average sales price across the region saw a dip to $601,289, from $611,509 recorded in September.

Across London, the average sales price increased to $596,951 in October, from $591,927 in September. “London South continued to gain in average sales price, month over month, “Tiller said. “It was $620,821, up from the September average sales price of $608,872. London East also saw a healthy gain with an average sales price of $484,749, up from the average of $456,814 in September.”

The table below displays October’s average prices and MLS® HPI Benchmark Prices in LSTAR’s main regions.

AREA	MLS® HPI BENCHMARK	AVERAGE PRICE
Central Elgin	$ 629,000	$ 586,868
London	$ 525,900	$ 596,951
London East	$ 425,000	$ 484,749
London North	$ 597,300	$ 655,236
London South	$ 542,300	$ 620,821
Middlesex Centre	$ 736,300	$ 773,836
St. Thomas	$ 490,400	$ 513,697
Strathroy-Caradoc	$ 721,200	$ 569,023
LSTAR	$ 538,000	$ 601,289

The HPI benchmark price reflects the value of a “typical home” as assigned by buyers in a certain area based on various housing attributes, while the average sales price is calculated by adding all the sale prices for homes sold and dividing that total by the number of homes sold. The HPI benchmark price is helpful to gauge trends over time since averages may fluctuate by changes in the mix of sales activity from one month to the next.

The following table displays October’s benchmark prices for all housing types within LSTAR’s jurisdiction and shows how they compare with those recorded in the previous month and three months ago.

MLS® HOME PRICE INDEX BENCHMARK PRICES
Benchmark Type	October 2026	Change Over September 2026	Change Over July 2026
LSTAR Composite	$538,000	-4.0%	-4.8%
LSTAR Single-Family	$582,700	-5.1%	-5.8%
LSTAR One Storey	$536,100	-2.7%	-0.7%
LSTAR Two Storey	$619,600	-4.9%	-7.0%
LSTAR Townhouse	$418,800	-0.9%	-2.5%
LSTAR Apartment	$299,200	-5.7%	-9.4%

The table below shows the most recent HPI benchmark prices across the country, courtesy of CREA.

According to a 2025 study(1) by Altus Group, the average housing transaction in Ontario generated approximately $124,200 in spin-off spending per transaction, between 2022 to 2024. These include such expenses as legal fees, appraisers, moving costs, new appliances, and home renovation expenses.

“In October, that translates into potentially generating more than $69 million into the local economy,” Tiller said.

Employment resulting from home sales is also significant, according to the Altus study. Resale housing activity created an estimated 117,610 jobs annually in Ontario from 2022 to 2024. Jobs include manufacturing, construction, skilled trades, finance, and insurance.

[1] Economic Benefits Generated by Home Sales and Purchases Over MLS® Systems Across Canada, Altus Group, 2025

Download the full report here.