What just happened?
Fresh numbers came out today (October 16, 2026) from CREA, the Canadian Real Estate Association. In September, for roughly every 100 homes sold in August across Canada, only about 98 sold. That is a 2.3% dip — and it is the second month in a row that sales have slowed down.
The national price tracker (called the Home Price Index — think of it as a thermometer that measures what a typical home costs over time) dipped 0.4% in a month and is down 3.4% compared to last September.
Another useful number: out of every 100 homes listed for sale in Canada in September, about 49 sold. The long-term normal is about 55 out of 100. So buyers have a bit more choice than usual right now.
Why did sales slow down?
Two reasons, both about money.
First, fixed mortgage rates went up. When the rates banks charge go higher, monthly payments get bigger — and some buyers decide to wait.
Second, everyone is watching the Bank of Canada. The Bank decides what to do with its main interest rate on October 28. Most economists expect it to stay at 2.25% for now — but financial markets are betting there could be a small increase in December. When buyers are not sure what rates will do next, many of them pause. As CREA's senior economist Shaun Cathcart put it this morning, this fresh round of uncertainty will likely send some buyers back to the sidelines.
Canada also lost 68,300 jobs in September and unemployment rose to 6.5%. That is one more reason some families are pressing pause.
Is this a crash? Should I panic?
No. Here is some perspective: before this dip, the market had four straight months of modest improvement. September was a step back, not a free fall. A crash means prices collapsing fast — what we see is a slowdown, not a collapse. Big difference.
What does this mean for buyers in London?
This slowdown gives you something buyers have not had in years: breathing room. Fewer buyers rushing in means less competition, more choice, and real room to negotiate.
But remember — London is not one market, it is several:
Detached homes are still the strongest segment here. In September, the average City of London detached home cost about $650,725, and detached homes sold in a median of about 21 days. Good homes in this segment still move fast.
Townhouses (average about $474,546) and condos (average about $314,365) have more competing listings and take longer to sell — about 39 and 35 days respectively. That is where buyers have the most negotiating power.
The market doesn't determine your strategy — your segment does.
One practical note: fixed rates have been creeping up while variable rates follow the Bank of Canada's decisions. Before you shop, get a pre-approval from a mortgage advisor — like our trusted Carlos Tovar — so you know your real monthly number, not a guess.
What does this mean for sellers in London?
Honesty first: it is not a "list it and watch ten offers roll in" market anymore. About 33 out of every 100 new listings in London sold in September. That means realistic pricing and great presentation matter more than ever — especially for townhouses and condos, where you are competing with more sellers.
The good news: with 5.7 months of inventory, we are not drowning in listings either. Well-priced, well-presented homes — especially detached homes — are still selling.
So… should I wait or act?
If you are buying: waiting for rates to be "perfect" has a cost too — you keep paying rent, and life keeps moving. The buyers who win in slow markets are the ones who are prepared (pre-approved, clear on their budget) and ready to move when the right home appears.
If you are selling: this is the market where strategy beats luck. Price it right from day one, present it beautifully, and lean on an agent who knows your segment.
Uncertainty freezes most people. Preparation rewards the few who act anyway.
Thinking about buying or selling in London? Write to us — we will tell you what is happening in your segment, not in some national average.
— Paola Cano & Jose Ramirez, Thrive Realty Group Inc., Brokerage, London, Ontario.