The London and St. Thomas real estate market experienced a notable pause in activity during November, with sales figures showing virtually no movement compared to the same period last year. The London and St. Thomas Association of Realtors (LSTAR) released data indicating a flatlining market, attributing the trend to a significant number of prospective purchasers choosing to wait on the sidelines.
Market Data Points to a Standstill
According to the latest figures from LSTAR, the number of residential properties sold through the MLS System in November 2025 was essentially unchanged from November 2024. This stagnation follows a period of adjustment earlier in the year and suggests a new phase of caution among consumers. The association's report, issued on December 3, 2025, highlights that while inventory levels have seen some fluctuation, the critical driver of the current stall is a lack of confident buyers entering the market.
Ashley Hyshka reported on the findings, which were based on the association's monthly market analysis. The data paints a clear picture of hesitation, with many potential homeowners apparently adopting a wait-and-see approach amidst broader economic uncertainties, including interest rate environments and affordability concerns.
What's Keeping Buyers on the Sidelines?
Industry experts analyzing the LSTAR report point to several converging factors. Affordability remains a persistent challenge, with prices still elevated from historical norms despite some cooling. Furthermore, the direction of mortgage rates continues to create uncertainty, causing some households to postpone their purchasing decisions in anticipation of more favorable borrowing conditions.
The psychological impact of a slower market can also become self-reinforcing. As news of flat sales spreads, it can lead to increased caution, with buyers worrying about purchasing just before a potential price correction. This creates a cycle where decreased buyer activity leads to further market softening, which in turn justifies the initial hesitation.
Implications for Sellers and the Local Market
For sellers in the London region, this environment demands a shift in strategy. Properties must be priced competitively and presented impeccably to stand out in a market where buyers feel less urgency. The average days on market is likely to creep upward, and negotiation dynamics may favor the buyer more than they have in recent years.
Looking ahead, the LSTAR will monitor the December figures closely to see if the traditional year-end slowdown is more pronounced or if any unexpected momentum emerges. The association's data serves as a crucial barometer for the regional economy, as housing activity is closely linked to consumer confidence, employment health, and local investment. The current plateau underscores a period of transition and adjustment for one of Southwestern Ontario's key housing markets.
