While underbidding in the Greater Toronto Area housing market decreased slightly in September, that was not the case in the Durham Region. The region had even more neighbourhoods with homes selling for below list price than in the previous month.
In September, only 12 per cent of Durham Region neighbourhoods were in overbidding territory, down from 13 per cent in August and 27 per cent in July. An additional 2 per cent were selling at asking while 85 per cent were selling for under-asking — up 8 per cent from the previous month.
While the number of underbidding neighbourhoods in Durham Region increased last month, the number of GTA neighbourhoods in underbidding territory dropped from 89 per cent in August to 86 per cent in September.
The Top-5 Overbidding Neighbourhoods in September 2024
Only five neighbourhoods were in overbidding territory last month in Durham Region, with two in Oshawa taking first and third spot for most overbid neighbourhoods, followed by communities in Whitby, Ajax and Pickering. Lakeview, Oshawa, was the most overbid neighbourhood with a median sold price of $703,000 and median overbid amount of $75,551.
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 September 2024
Four of the top-5 underbidding neighbourhoods in September are in Ajax. Clarington was the most underbid neighbourhood with a median sold price of $1,190,000 and a median underbid amount of -$59,900.
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 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 September, there were 41 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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