New data from the London and St. Thomas Association of Realtors (LSTAR) indicates a positive shift in the local housing market as 2025 came to a close. The figures for December 2025 suggest a rebound in both sales activity and pricing, offering a note of optimism for the new year.
December Data Points to Market Recovery
The statistics released by LSTAR show a clear uptick from previous months. While the broader article preview includes numerous national headlines, the local focus reveals that the average home sales price in the London area experienced a notable adjustment. For context, a separate data point in the news summary notes the average price in Windsor-Essex dropped to $524,840, highlighting regional variations across Southern Ontario. The LSTAR data for London specifically points to a recovery trend as the calendar turned.
This rebound follows a period of market cooldown experienced across many Canadian regions. The December figures are a critical indicator, often setting the tone for early-year activity. The data suggests that buyer confidence may be returning to the London market, potentially spurred by stabilized interest rates or seasonal factors.
Analyzing the Local Landscape and Broader Context
The real estate update is set against a backdrop of varied economic news. The preview references forecasts predicting higher Alberta gas prices in 2026 and a lacklustre outlook for oil, factors that can indirectly influence housing markets in resource-dependent provinces. In contrast, Ontario's market dynamics are driven by different local and provincial economic drivers.
Furthermore, the mention of a persistent freeze-thaw cycle and freezing rain impacting Southern Ontario serves as a reminder of the practical challenges of winter house hunting and moving, which can typically suppress December activity. The rebound noted by LSTAR is therefore particularly significant, as it overcame typical seasonal slowdowns and adverse weather conditions.
What This Means for Buyers and Sellers in 2026
The December rebound signals a potential return to a more balanced or active market in the London and St. Thomas area as we move into 2026. For sellers, this data may indicate a favourable window to list properties, with increased buyer interest. For buyers, it suggests that the period of steep declines may have stabilized, requiring a more strategic approach to offers and negotiations.
The key takeaway from the LSTAR report is one of cautious optimism. While a single month does not define a long-term trend, a strong December finish often provides momentum for the spring market. Stakeholders will be watching the January and February 2026 data closely to see if this rebound solidifies into a sustained recovery for the region's real estate sector.
