Homebuyers had already been holding the cards in the Greater Toronto Area (GTA), but they were dealt an even stronger hand in August as the share of neighbourhoods in underbidding territory matched a three-year high, according to a new report from digital real estate platform Wahi.
In August, 98 per cent of GTA neighbourhoods with at least five sales saw homes sell for below asking, up from 95 per cent in July and 89 per cent a year earlier. This marks only the third time since Wahi began tracking the data in July 2022 that underbidding has been this widespread.
“The condo market downturn is part of the story, but we’re also seeing more underbidding activity in the single-family home segment,” says Wahi Economist Ryan McLaughlin. In fact, 94 per cent of neighbourhoods with five or more single-family home sales were underbid in August, getting closer to the 97 per cent of condo neighbourhoods.
Overall, 79 per cent of homes across the GTA sold below list price in August, a clear sign that buyers remain in the driver’s seat.
The report also highlights the Top-5 underbidding neighbourhoods ( including York Mills and Rural Vaughan, both repeats from July) and notes that just four GTA neighbourhoods saw overbidding activity last month, in two cases by less than $2,000.