The London Ontario housing market is heading into 2026 with a calmer outlook than we've seen in recent years. If you're thinking about buying a home in London Ontario or downsizing to a smaller community like Lucan or Exeter this shift could work in your favor.

After a decade marked by rapid price swings, tight inventory and pandemic-related disruptions buyers and sellers are finally seeing signs of stability. That means your timing and strategy will matter more than chasing trends or trying to time a hot market.

How is the London Ontario housing market performing in 2026?

According to multiple national and provincial forecasts the Canadian housing market is expected to show modest recovery in 2026. Sales activity is projected to increase slightly after a slower 2025 with average home prices inching up in many markets — including London.

Locally, price trends will vary by neighborhood and home type. Detached homes in family-friendly areas like Byron and Oakridge could see more consistent interest while condos or properties in more saturated segments may level off or take longer to sell. For small towns like Komoka or St. Marys the draw of more space and quieter living continues to attract buyers relocating from larger cities.

While you likely won’t see bidding wars return in the same way we saw in 2020–2021 that doesn't mean this is a sleepy market. The conditions are still competitive — just more balanced — which gives serious buyers a better opportunity to negotiate.

What do 2026 mortgage rates mean for buyers and sellers?

Interest rates are a key factor in any real estate plan and in 2026 the general consensus is that mortgage rates will remain steady. Most analysts suggest we’re entering a flat-rate environment meaning we’re not likely to see dramatic drops — but we’re also past the sharp spikes of recent years.

What this means for buyers is predictability. You’ll have a clearer sense of your borrowing power and monthly costs. For sellers it also means a wider pool of qualified buyers compared to the uncertainty of previous years.

Summary: Strategy Will Matter More Than Speed

The 2026 market won’t be defined by urgency — it will be defined by preparation. If you’re thinking about buying, selling or downsizing in London Ontario or surrounding small towns this is a time to think clearly and act confidently.

Thinking about buying or downsizing near London Ontario? We’ll help you plan the right move at the right time.

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