The level of underbidding on single-family homes across the Greater Toronto Area in July increased to the highest point since January 2024, as an increasing share of properties sold below asking throughout the region.
Some 92 per cent of GTA neighbourhoods with at least five single-family home sales in the month of July were in underbidding territory, with the remaining 8 per cent selling above asking. Single-family homes include detached and semi-detached properties as well as row and townhouses, suggests the latest monthly Market Pulse report from Wahi, a Canadian real estate listings website and app.
While underbidding on condos was more prevalent — 97 per cent of neighbourhoods in which five units changed hands last month were in underbidding territory — the gap between the two segments has been narrowing.
“The condo market’s cooldown has been grabbing headlines, but we’re seeing many buyers have recently been able to purchase a house for below asking, too,” notes Wahi Economist Ryan McLaughlin.
4% were in overbidding territory
When looking at all property types, 95 per cent of GTA neighbourhoods with at least five home sales recorded in July were in underbidding territory, up from 93 per cent in June and 82 per cent during the same month last year. An additional 4 per cent were in overbidding territory, while 1 per cent were selling at asking.
Since Wahi began tracking homebuying competition in July of 2022, only December 2023 and January 2024 saw more widespread underbidding, with 98 per cent of neighbourhoods underbid during both months.
“One difference between last month’s underbidding activity and the peak is that this time it occurred when more homes were actually selling,” says McLaughlin.
For example, in December 2023, only 122 neighbourhoods recorded five or more home sales, while that number dropped to 55 in January 2024. Last month, on the other hand, there were at least five home sales in 296 of the GTA’s approximately 400 neighbourhoods.
Ledbury Park in North York was the only holdover from the top five underbidding neighbourhoods in June, this time slipping to the fifth slot when ranked by the median underbid amount. In June, it placed third.
In July, there were no carryovers from June’s top five overbidding neighbourhoods. However, the long-run trend of the top overbidding neighbourhoods generally having lower price points than their underbidding counterparts continued. In fact, of the just 13 neighbourhoods in overbidding territory last month, all but five had a median price below the $1-million mark.
Nearly Eight-in-10 GTA Homes Sell Below Asking in July
In addition to monitoring bidding competition at the neighbourhood level, Wahi also looks at what percentage of homes in the GTA are selling for less than asking, regardless of location.
Sellers Accepting Lesser
In a little more than three-quarters (76 per cent) of the transactions that took place in July, sellers accepted less than the list price. That’s up from June, when 71 per cent of homes sold below the asking price.
It remained more likely for condos to sell for under asking, with 80 per cent of units changing hands for below the list price, compared to 73 per cent of single-family homes.
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