As demand for homes in the Greater Toronto Area began brewing in October, a similar trend occurred in the Durham Region. The region saw an increase in neighbourhoods with homes selling for above list price from the previous month.
In October, 16 per cent of Durham Region neighbourhoods were in overbidding territory, up marginally from 12 per cent in September and 13 per cent in August. An additional 9 per cent were selling at asking, up from 2 per cent in September, while 74 per cent were selling for under-asking, down from 85 per cent the previous month.
The Top-5 Overbidding Neighbourhoods in October 2024
Seven neighbourhoods out of 43 were in overbidding territory last month in Durham Region, with two in Ajax taking first and second place for most overbid neighbourhoods, followed by one in Clarington and two in Pickering. Lakeside, Ajax, was the most overbid neighbourhood with a median sold price of $915,000 and a median overbid amount of $28,000.
When a neighbourhood is in overbidding territory it doesn’t necessarily mean that every home is selling above list price. Instead, it’s a general reflection of overall market behaviour, which can be influenced by seasonal factors, for example, or decisions by sellers, such as to list homes below market value to try to attract more bids.
The Top-5 Underbidding Neighbourhoods in October 2024
The top-5 most underbid neighbourhoods in October were scattered across the region. Rougemount, Pickering, was the most underbid with a median sold price of $1,240,000 and a median underbid amount of -$39,000.
Generally speaking, the more active listings in a particular neighbourhood the more underbidding there can be because buyers have more bargaining power. The number of active listings makes competitive pricing more essential when selling a property.
At the end of each month, Wahi compares the differences between median list and sold prices to determine whether neighbourhoods are in overbidding or underbidding territory, excluding those neighbourhoods with fewer than five transactions in a given month. In October there were 43 Durham neighbourhoods where there were at least five home sales. The top overbidding and underbidding neighbourhoods are ranked by the median overbid or underbid amount. The median overbid and underbid amounts are calculated by subtracting the list price from the sold price of each individual listing in a given neighbourhood. These are then ranked by the median of all subtractions and presented as the median overbid or underbid amount.
Note: Benjy Katchen is the CEO of Wahi, a digital real estate company that redefines the homebuying experience by putting more power into consumers’ hands. By combining cutting-edge tech and market data with expert realtors, Wahi offers unmatched access to insights, tools and the team that makes buying a home faster and easier.
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