As autumn descends upon the Greater Toronto Area (GTA), the region’s real estate market is getting a chill of competition. Despite stable property prices, dwindling buyer interest has sparked a fierce rivalry among sellers. The September 2023 Market Pulse Report by Wahi reveals a staggering 74% of GTA neighbourhoods are now underbidding, with homes selling below their list price. In contrast, 67 neighbourhoods are in the overbidding zone, while only eight neighbourhoods see homes sold at the asking price.
Wahi’s CEO, Benjy Katchen, provides insights into these trends, pointing out, “The prominent underbidding neighbourhoods this year are generally pricier, while the overbidding hotspots are those with lower home prices. This pattern held steady throughout September.” Let’s explore the critical underbidding and overbidding regions shaping the GTA’s real estate scene.
GTA’s Top Underbidding Neighborhoods: September 2023
Southwest Oakville: -6% underbid, Median sold price $3,362,494
Eastlake, Oakville: -5% underbid, Median sold price $4,800,000
Cachet, Markham: -4% underbid, Median sold price $2,168,000
Lawrence Park, Toronto: -3% underbid, Median sold price $4,080,000
Ledbury Park, Toronto: -3% underbid, Median sold price $2,700,000
These affluent areas, with their multi-million-dollar homes, span across Oakville, Toronto, and Markham, reflecting the changing currents in the real estate sector.
The trend of homes selling below the asking price has escalated since June, albeit at a diminishing rate. From July to August, the proportion of underbidding neighbourhoods leapt from 57% to 71%, but September’s increase was more muted, hinting at a possible market equilibrium.
GTA’s Top Overbidding Neighborhoods: September 2023
Little Portugal-Brockton Village, Toronto: +17% overbid, Median sold price $1,195,100
Bathurst Park, Toronto: +12% overbid, Median sold price $1,395,000
Milliken Mills West, Markham: +10% overbid, Median sold price $1,380,000
Bayview Woods, Toronto: +9% overbid, Median sold price $1,456,000
Berczy Village, Markham: +8% overbid, Median sold price $1,773,000
These neighbourhoods narrate a contrasting tale, where buyers are paying above the asking price to secure a home in GTA’s real estate realm.
Zoocasa’s recent analysis aligns with this trend, spotlighting homes selling below their listing price. The average list price in major GTA cities was juxtaposed against actual sale prices in September. In King, Ont., traditionally an expensive area, homes sell at a 36% discount from the average listing price of $3.2 million, averaging a $2.05 million sale price.
Halton Hills exhibited the most substantial disparity, with homes selling at 43% below the list price, averaging $1.08 million, versus the average list price of $1.9 million. Caledon followed closely, with homes selling at a 42% discount from their average list price of $2.36 million at an average sale price of $1.37 million.
On the flip side, Orangeville had the smallest gap between listing and selling prices, with homes selling for only 10% less than the average list price of $908,000, at an average sale price of $817,000. Oshawa emerged as the most affordable city on the list, with an average price of $757,000, 14% less than the average listing price of $876,000.
In the ever-evolving GTA real estate market, the war between buyers and sellers is ongoing. As autumn progresses, whether the cooling air will usher in more market balance or heighten the competition among home-seekers remains to be seen.
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