Did home prices drop in London and St. Thomas in October? The benchmark says yes, while some of the averages say the opposite. Sales held almost exactly at September’s pace, LSTAR’s composite benchmark price fell 4.0% in a single month, and the Bank of Canada raised its policy rate on October 28. This update separates the regional headlines from the decisions you make on an individual home.
What do these numbers mean for your home?
Ask Andy Nagpal, Broker, eXp Realty, Brokerage, for a neighbourhood-specific buying or selling plan.
226 581 9220October in numbers across the LSTAR region
| Measure | October 2026 | For comparison |
|---|---|---|
| Sales | 557 | 561 in September; −7.5% vs October 2025 |
| New listings | 1,429 | −1.9% vs October 2025 |
| Active listings at month end | 3,247 | +3.3% vs October 2025 |
| Months of inventory | 5.8 | 5.9 in September; 5.2 in October 2025 |
| Sales-to-new-listings ratio | 39.0% | 34.7% in September; 45% to 65% is balanced |
| Average sale price | $601,289 | $611,509 in September; −0.6% vs October 2025 |
| Median sale price | $557,000 | −0.8% vs October 2025 |
| Sale-to-list price ratio | 96.8% | 97.1% in October 2025 |
| Median days on market | 29 | 29 in October 2025 |
Source: LSTAR’s October 2026 release and the October 2026 Residential Market Activity and MLS® HPI report prepared for LSTAR by CREA. LSTAR’s region covers more than London and St. Thomas; its regional totals should not be labelled London-only figures.
The number I would watch is active listings. The 3,247 homes for sale at the end of October is the highest October count in LSTAR’s report, which goes back to 2016. Buyers are not short of choice, and homes sold for 96.8% of their list price on average. A home priced on hope now sits beside one priced on evidence, and buyers can tell the difference.
What were October’s average home prices in London and St. Thomas?
| Area | Average sale price | HPI benchmark | Benchmark vs September |
|---|---|---|---|
| London | $596,951 | $525,900 | −1.9% |
| London East | $484,749 | $425,000 | −2.4% |
| London North | $655,236 | $597,300 | −3.1% |
| London South | $620,821 | $542,300 | −2.3% |
| St. Thomas | $513,697 | $490,400 | −3.8% |
| LSTAR region | $601,289 | $538,000 | −4.0% |
Source: LSTAR’s October 2026 release and CREA’s October 2026 report for LSTAR. Benchmark changes are LSTAR’s published monthly percentages, which may differ from calculations using figures in earlier releases.
Why did London’s average rise while every benchmark fell?
London’s average sale price climbed to $596,951 from $591,927 in September, and London East jumped to $484,749 from $456,814. Yet the benchmark fell in every London district and in St. Thomas. That is the same split I flagged in September, and the explanation has not changed: the average reflects which homes happened to sell. A month with more larger or detached homes in the mix lifts the average even while comparable homes lose value.
The MLS® Home Price Index tracks a typical home, which makes it the better read on direction. We use LSTAR’s published monthly percentage changes, which may differ from calculations using figures in earlier releases. Neither measure is a valuation of your own property.
How did different property types perform?
| LSTAR property type | October benchmark | Change from September | Change from July |
|---|---|---|---|
| Single-family | $582,700 | −5.1% | −5.8% |
| One-storey | $536,100 | −2.7% | −0.7% |
| Two-storey | $619,600 | −4.9% | −7.0% |
| Townhouse | $418,800 | −0.9% | −2.5% |
| Apartment | $299,200 | −5.7% | −9.4% |
Apartments and two-storey homes saw the largest declines. The apartment benchmark is down 9.4% since July and 12.2% from October 2025. Townhouses barely moved this month, though they sit 10.6% below a year ago. For condo buyers, a falling segment means room to negotiate, and it also means reading the status certificate and reserve fund study before you firm up. Paying too much for a building with major repairs ahead hurts more when prices are not rising to cover it.
What happened in St. Thomas?
St. Thomas was busier than the region overall. It recorded 51 sales in October, up 8.5% from October 2025, with 4.6 months of inventory compared with 5.8 across LSTAR. Homes also sold faster, at a median of 23 days on market against 29 regionally, and for 97.7% of list price.
Prices went the other way. The St. Thomas benchmark fell 3.8% in a month to $490,400 and is 8.0% below a year ago, while the average sale price of $513,697 was down 7.4% year over year. Buyers are active in St. Thomas, but they are buying at lower prices than last fall. Sellers there should price from recent local sales, not from what a neighbour got in 2025.
What does the Bank of Canada rate hike change?
LSTAR’s chair pointed to the Bank of Canada’s October 28 increase, which took its policy rate to 2.50%. Only the last few days of October’s sales could have felt it, so November’s numbers will tell us more. If you have a variable-rate mortgage or were pre-approved before October 28, check with your lender what your payment would be today and whether your rate hold still applies before you write an offer.
What should London and St. Thomas buyers do next?
With 5.8 months of inventory and benchmarks falling, you can compare more homes and negotiate harder than buyers could two or three years ago. The mistake is assuming every seller will discount. Well-priced homes still sell, and in St. Thomas they sold faster than the regional median in October. Narrow your search first, then negotiate with evidence.
- Compare recent sales of similar homes on the same street or in the same neighbourhood, not the regional average.
- Check how long a home has been listed and whether its price has already changed.
- Keep financing, inspection and condominium document conditions where they protect you. With this much choice, conditions are a normal part of an offer.
What should sellers do before setting a price?
Price against today’s competition, not last spring’s. The regional benchmark is 6.6% lower than a year ago, and buyers can see every listing you are competing with. I would set the price from completed sales of similar homes, prepare the home so it shows well, and agree on a review date before listing. If showings and feedback say the price is off, adjust early rather than letting the listing go stale.
If you are selling and buying, a softer market works on both sides. A lower price on your sale may be offset by a better price on your next home. Compare the total cost and timing of the move before you decide whether to list first or buy first.
Frequently asked questions
Did home prices drop in London and St. Thomas in October 2026?
By the benchmark, yes. LSTAR’s composite benchmark fell 4.0% from September to $538,000 and is 6.6% below October 2025. London’s benchmark fell 1.9% in the month and St. Thomas’s fell 3.8%. Some area averages rose, but averages reflect the mix of homes that sold.
Is it a buyers’ market in London and St. Thomas?
LSTAR said October showed signs of a buyers’ market. The sales-to-new-listings ratio was 39%, below the 45% to 65% range CREA treats as balanced, and the region had 5.8 months of inventory. Individual homes can still attract competition, so judge each one against its alternatives.
Is the regional average what my home is worth?
No. A regional average combines many locations and property types. Your home needs a comparison with recent sales that match its neighbourhood, size, condition and ownership type.
Which month does this update cover?
This post covers October 2026 transactions, using LSTAR’s October 2026 release and CREA’s October 2026 market activity report for LSTAR. It does not report November sales or predict future prices.
