REAL ESTATE ADVICE

What Is a Buyer's Market and How Does It Affect London Ontario?

You've probably heard that London is "a buyer's market" right now. But what does that phrase actually mean, how do you know it's true, and what should you do about it? Let me break down the term in plain language, show you the two numbers that define it, and explain exactly what it changes if you're buying or selling here in 2026.

Eric Cassidy

London Ontario Real Estate Agent, Cassidy & Co.

June 2026 7 min read

The simple definition

A buyer's market is what happens when the number of homes for sale outpaces the number of buyers ready to purchase them. Supply exceeds demand, so the balance of power tilts toward buyers. They have more homes to choose from, less competition for each one, and more leverage to negotiate on price and terms.

The opposite is a seller's market — too few homes, too many buyers, bidding wars, and prices pushed up. In between sits a balanced market, where neither side has a clear structural advantage. Markets move between these states over time, and London has cycled through all three in just the last several years.

The two numbers that define it

You don't have to guess which market you're in. Two metrics tell the story, and both are reported monthly by the London and St. Thomas Association of Realtors.

The first is months of inventory — how long it would take to sell every listing at the current pace, if nothing new came on the market. The second is the sales-to-new-listings ratio — what share of newly listed homes are actually selling. Here's how the thresholds generally break down.

What it changes if you're buying

This is the environment buyers wished for during the frenzied years. You can actually take your time to view homes, sleep on a decision, and compare options instead of firing off an offer the same afternoon. Critically, you can usually include conditions again — financing and home inspection clauses that protect you, which were nearly impossible to use successfully when sellers held all the cards.

There's also more room to negotiate on price, closing date, and items like appliances or repairs. That said — and I tell every client this — a buyer's market is not a clearance sale. The strongest, well-priced homes in desirable London neighbourhoods still attract competition and sell quickly. Leverage rewards buyers who are organized: pre-approved, clear on their criteria, and ready to move decisively when the right home appears. Our overview of how buying works in London walks through getting ready.

It also changes the emotional pressure of the search, which matters more than people expect. When you're not afraid of losing every home to a bidding war, you make clearer decisions and you're less likely to overpay or waive protections out of fear. That calmer footing is one of the most underrated advantages of buying in a market like this one — and it's exactly when a level-headed agent earns their keep, by keeping you focused on value and fit rather than urgency.

What it changes if you're selling

A buyer's market doesn't mean you can't sell well — it means you have to sell smart. With more competing listings, your home has to stand out on the two things buyers weigh most: price and condition. Overpricing is the single biggest mistake I see in this market. A home priced above what the data supports tends to sit, go stale, and ultimately sell for less than if it had been priced correctly from day one.

The sellers who do best treat presentation seriously — decluttering, addressing obvious repairs, and showing the home at its best — and price to the current market, not the peak. Done right, well-prepared London homes are still selling in a reasonable timeframe. Starting with an honest home evaluation grounded in recent comparable sales is the foundation.

How long do buyer's markets usually last?

There's no fixed timeline. A buyer's market lasts until the balance between supply and demand shifts — either inventory gets absorbed faster than new listings replace it, or demand picks up because of lower borrowing costs, population growth, or improved consumer confidence. London's current conditions have been building over several quarters rather than appearing overnight, and the early-2026 data shows sales ticking up year-over-year while inventory stays elevated. That combination is what eventually tightens a market, but it tends to happen gradually, not in a single month.

For buyers, that's the practical takeaway: a buyer's market is a window, not a permanent state. The leverage you have today — more selection, more time to decide, more room to negotiate conditions — is tied to conditions that can move with interest rates and seasonal demand. Trying to time the exact bottom is a losing game; the more useful approach is to buy when the numbers work for your situation and the home fits your life, while taking full advantage of the negotiating position the current market gives you.

How does a buyer's market affect home prices in London Ontario?

In a buyer's market, prices generally flatten or soften because sellers compete for a smaller pool of buyers. That's roughly what London has seen — the average price is down about 2.5% year-over-year, not collapsing, but no longer climbing. For buyers, that means today's pricing reflects negotiating room that didn't exist a few years ago. For sellers, it means the market sets the price, and listing realistically is what gets a home sold. The conditions can shift, though, which is why I'd encourage anyone making a move to look at the most current monthly numbers rather than relying on a label.

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Eric Cassidy

London Ontario Real Estate Agent — Cassidy & Co.

Eric has guided clients through buyer's, seller's and balanced markets in London Ontario, adapting strategy to whatever the data shows. He's a firm believer that understanding market conditions beats reacting to headlines. Learn more about Eric and the team.