Bidding competition in the Greater Toronto Area (GTA) resale market softened in May, despite what is typically the peak of the spring housing market.
Some 7 per cent of GTA neighbourhoods with at least five resale transactions were in overbidding territory in May, down from 13 per cent in April, according to new analysis from digital real estate platform Wahi.
Meanwhile, 92 per cent of neighbourhoods sold below asking and 1 per cent sold at asking, underscoring that much of the resale market remains buyer-friendly.
The pullback was especially noticeable for single-family homes. Some 12 per cent of GTA neighbourhoods with at least five single-family home sales were overbid in May, down from 21 per cent in April. Condo overbidding remained limited, with 1 per cent of neighbourhoods overbid compared to 3 per cent the month prior, said the report.
“It could be that some buyers who were previously considering a resale home are setting their sights on pre-construction properties thanks to Ontario’s recently announced HST rebate on new homes,” says Wahi Economist Ryan McLaughlin.
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