As overbidding and underbidding activity in the Durham Region decreased in March, compared to the previous month, the percentage of neighbourhoods with homes selling at asking price nearly tripled.
In March, 39 per cent of the Durham Region neighbourhoods were in overbidding territory, down slightly from 46 per cent in February, while 39 per cent were in underbidding territory, also down slightly from 46 per cent. An additional 21 per cent were selling at asking, up from 8 per cent in February.
The Top-5 Overbidding Neighbourhoods in March
Fifteen of the 38 neighbourhoods were in overbidding territory last month in the Durham Region. Four of the five most overbid neighbourhoods are in Ajax, while one is in Pickering. Westney Heights, Ajax, was the most overbid neighbourhood, with a median sold price of $1,035,000 and a median overbid amount of $120,001.
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 attract more bids.
The Top-5 Underbidding Neighbourhoods in March
The five most underbid neighbourhoods in March were spread across the region. Rural Pickering was the most underbid, with a median sold price of $1,050,000 and a median underbid amount of -$29,900.
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 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 March, there were 38 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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