London & St. Thomas Real Estate Market Shows Resilience Amid Economic Challenges
The London and St. Thomas Association of REALTORS® (LSTAR) has released its May 2025 residential market report, reflecting a market in transition amid broader economic pressures, including the ongoing impact of US tariffs.
In May, 722 homes were sold—a 15.4% decline from May 2024. Meanwhile, new listings rose 15.3% to 1,999, and active listings climbed 26.5% to 3,253, offering buyers a wider selection of properties.
“The increase in listings is encouraging for buyers,” said Dale Marsh, 2025 LSTAR Chair. “However, economic uncertainty, particularly from US tariffs, continues to influence market behavior.”
The average home price reached $656,432, up 1.4% year-over-year, signaling steady demand. Inventory levels also rose, with 4.5 months of supply, pointing to a more balanced market.
“Despite softer sales, the market remains resilient,” Marsh added. “Rising inventory and stable prices suggest opportunities for both buyers and sellers. Staying informed and adaptable is key in this evolving landscape.”
Overall, the region’s real estate market is adjusting to shifting conditions, showing signs of stability and adaptability in the face of external economic challenges.
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.
In May 2025, the MLS® Home Price Index Benchmark Price for the London and St. Thomas area showed varied trends across different property types. The composite benchmark price was $593,900, reflecting a slight increase of 0.8% from the previous month but a decrease of 4.5% over three months and 2.2% over twelve months. Single-family homes had a benchmark price of $651,500, with a 1.6% rise from last month but a 13.6% drop over three years. One-storey homes saw the most significant monthly increase at 3.5%, reaching $602,700, while two-storey homes had a modest 0.6% rise to $691,700. Townhouses and apartments experienced declines, with benchmark prices of $488,200 and $369,500 respectively, indicating a challenging market for these property types. Over a five-year period, one-storey homes showed the highest growth at 55.9%, highlighting long-term appreciation in this segment.
Board & Association Information
The London and St. Thomas Association of REALTORS® (LSTAR) is one of Canada’s largest real estate associations, representing over 2,300 REALTORS® from London, St. Thomas, Strathroy, Middlesex County, & Elgin County. Guided by a ten-member Board of Directors and administered by a team of professional staff specialists, LSTAR strives to deliver excellent service to its Members, including not only its core service, the MLS® system, but also Arbitration, Education, Professional Standards, Communications, and Government and Community Relations. It is nationally recognized as a leader in technological innovation, political action and community service. As members of the Canadian Real Estate Association, LSTAR members may use the REALTOR® trademark, which identifies them as real estate professionals governed by a high standard of professional service and a strict Code of Ethics, committed to providing the best possible service to their clients and customers. The Association operates the local Multiple Listing Service® (MLS®), a co-operative marketing system used only by Canada’s real estate boards to ensure maximum exposure of properties for sale. Advertisements of local MLS® property listings and information about the services provided by a REALTOR® can be found at www.REALTOR.ca. More information about LSTAR is available at www.lstar.ca
LONDON & ST. THOMAS ASSOCIATION OF REALTORS®
For more information,
please contact:
(519) 641-1400
info@lstar.ca
Dale Marsh
