After a slow start to the year, the London-St. Thomas housing market appears to be gaining momentum, posting its strongest month of 2025 in June, according to the London St. Thomas Association of REALTORS® (LSTAR).
Sales activity, while still below 2024 levels, showed signs of improvement. Dale Marsh, spokesperson for LSTAR, said the year began with the market down significantly, but June data reflects a modest recovery.
“We started early on in the springtime, we were down 19 per cent in the number of home sales for the area, and now we’re down 14.6 per cent,” said Marsh. “So we’re still down, but it seems to be going in the right direction now.”
The number of homes sold rose slightly compared to May, while the average sale price dipped by about four per cent. Still, Marsh emphasized that overall pricing has remained relatively consistent over the past year and a half.
“We’ve really just been fluctuating between maybe one to two per cent each month,” he said. “Price-wise, year-to-date, we’re only down 0.1 per cent compared to this time last year.”
That price stability, combined with interest rate cuts from the Bank of Canada, appears to be giving buyers more confidence to enter the market. Marsh noted a change in sentiment among those who had been waiting on the sidelines.
“There’s some pent-up demand where people want to make a move, and at some point they just have to pull the trigger and say, ‘Okay, enough is enough,’” he said. “They’re jumping into the market now.”
In June, LSTAR recorded 1,814 new listings across the region. Active listings have climbed nearly 23 per cent year-over-year, with just four in 10 properties currently selling — a sign that sellers are facing more competition.
“The inventory is there,” said Marsh. “But you’ve got to stand out. Homes that are priced well and show well are selling — sometimes with multiple offers.”
While LSTAR reports an average of 23 days on market, Marsh cautioned that number may be lower than what many sellers experience.
“Some listings are taking two or three attempts to actually sell, so the real number might be closer to four or five weeks,” he said.
Looking ahead, Marsh said the outlook for the summer appears stable, with no major swings expected in either sales volume or pricing. While some homes are receiving multiple offers again, it’s far from the frenzied bidding wars seen in 2020 and 2021.
“You might see two or three offers on a well-priced home now,” he said. “Not 20 offers and $100,000 over asking.”
Marsh added that market activity tends to pick up during the late summer and early fall, and that the region may continue on a slow but steady recovery path — if interest rates remain favourable and consumer confidence holds.
