Good news for homebuyers, 70 per cent of homes in the GTA sold for less than listed in August, according to a local real estate agency.
According to Wahi, out of the 272 neighbourhoods where at least five homes sold in August, 89 per cent were in underbidding territory, up from 82 per cent in July. This represents the highest share of neighbourhoods in underbidding since January, when 98 per cent of nieghbourhoods saw prices bid down.
On Thursday, Wahi released its Aug. 2024 market pulse report which found that overall bidding in the region has settled down. The report found that on both a month-over-month and year-over-year basis, a greater share of homes were selling under asking.
After 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.
For August, 272 neighbourhoods out of the GTA’s approximate 400 met this threshold. Wahi’s data is sourced from Information Technology Systems Ontario (ITSO) and the Toronto Regional Real Estate Board (TRREB).
In comparison, last August, 60 per cent of homes were selling for below asking while 37 per cent of sellers received more than they asked for, and four per cent sold their homes for the listed price
“Declining interest rates had yet to spark more widespread bidding wars in the GTA last month as home sales continued to lag last year’s pace. In August, home sales across the region totalled 4,729, down about 11 per cent from the same month in 2023,” Wahi said in a press release.
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The report says that home buyers were fortunate last month, as they had the opportunity to negotiate.
“Many homebuyers who decided to act this August before the fall market gets underway managed to obtain below list prices. This was especially true for condo buyers,” Wahi CEO Benjy Katchen said in a statement.
In fact, in August, 78 per cent of condo units sold below asking, up from 76 per cent during the previous month and 70 per cent last year, according to Wahi’s analysis.
UNDERBIDDING IN GTA NEIGHBOURHOODS
When it comes to single-family houses, including detached, semi-detached, row homes, and townhouses, about 67 per cent of properties sold below asking. This is an increase of up to two percentage points month-over-month.
Despite this, Wahi notes that the median price of $935,000 remains the same compared to a year ago.
According to Wahi, out of the 272 neighbourhoods where at least five homes sold in August, 89 per cent were in underbidding territory, up from 82 per cent in July, representing the highest share of neighbourhoods in underbidding since January, when 98 per cent of nieghbourhoods saw prices bid down.
The number one overbidding neighbourhood in August was Eastlake, in Oakville. This area has become the most consistently underbid neighbourhood in the GTA for the 15th straight month.
Hogg’s Hollow in North York snagged the second spot, while York Mills in North York was third. Catchet in Markham took the fourth spot, while Mississauga’s Port Credit was fifth.
On the other end, the top five overbidding neighbourhoods in the GTA were Rouge Woods in Richmond Hill, The Danforth in Old Toronto, Parkwoods in North York, Raymerville in Markham and Doncrest in Richmond Hill.
For these findings, Wahi weighed the top overbidding and underbidding neighbourhoods and ranked them by the median overbid or underbid amount.
