Overbidding for homes in Durham Region continued to take a downward turn in May, compared to the previous month, as more Durham neighbourhoods saw homes selling for under asking.
In May, 26 per cent of the neighbourhoods in Durham Region were in overbidding territory, down from 30 per cent in April, while 74 per cent moved into underbidding territory, up from 60 per cent. There were no neighbourhoods where homes were selling at asking, compared to 10 per cent the previous month.
The Top-5 Overbidding Neighbourhoods in May
Eleven of the 42 neighbourhoods were in overbidding territory last month in the region. Two of the five most overbid neighbourhoods are in Ajax, two are in Oshawa, while one is in Pickering. Downtown Ajax was the most overbid neighbourhood, with a median sold price of $825,000 and a median overbid amount of $90,100.
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 listing homes below market value to attract more bids.
The Top-5 Underbidding Neighbourhoods in May
Two of the top-5 most underbid neighbourhoods in May are in Oshawa, while the remaining three are spread across the region. Windsfield, Oshawa is the most underbid, with a median sold price of $1,049,900 and a median underbid amount of -$31,500.
Generally speaking, the top underbidding neighbourhoods in the Durham Region tend to be more expensive, while the top overbidding neighbourhoods have comparatively lower list prices.
At the end of each month, Wahi compares the differences between the 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 May, there were 42 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.
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