Buyers are still in control of the Greater Toronto Area housing market, although competition for homes is making a comeback in some parts of the GTA, especially in the single-family home segment, September stats reveal.
In September, 8 per cent of neighbourhoods in the GTA were in overbidding territory, up from just 1 per cent in August, according to a new report from digital real estate platform Wahi. However, the vast majority – 92 per cent – were underbid and 1 per cent sold at asking.
August had painted a starker picture, with nearly all GTA neighbourhoods seeing homes sell for under the list price. Although, as Wahi Economist Ryan McLaughlin points out, “We shouldn’t read too much into one month of more widespread overbidding activity, given the role seasonality plays.”
Demand for Single-family Homes
The uptick in overbidding activity is driven by demand for single-family homes, McLaughlin explains. In September, 10 per cent of neighbourhoods where at least five or more single-family homes changed hands saw overbidding, up from 4 per cent in August. By contrast, there were no condo neighbourhoods in overbidding territory, as 98 per cent of them were underbid, with 2 per cent selling at asking.
Top overbidding hotspots were concentrated in Toronto, including Dovercourt Park, Harbord Village, The Danforth, and Riverdale, while most underbidding neighbourhoods clustered in midtown Toronto and affluent neighbourhoods outside the city, including Oakville, the report said.