As autumn graces the Greater Toronto Area (GTA) with its cool embrace, a frosty climate of competition blankets the region’s real estate market. While property prices have remained steady, a drop in buyer interest has ignited fierce rivalries among sellers. According to the September 2023 Market Pulse Report by Wahi, an astounding 74 percent of GTA neighborhoods are now submerged in underbidding territory, with more homes sold for less than their list price. In contrast, a mere 67 neighborhoods find themselves in overbidding territory, while only eight boast homes sold at the asking price. Wahi CEO Benjy Katchen sheds light on the trends, noting, “The top underbidding neighborhoods this year have typically been more expensive, while the top overbidding neighborhoods have tended to be neighborhoods with lower home prices. This trend persisted throughout September.” So, let’s delve into the hotspots of underbidding and overbidding shaping the GTA’s real estate landscape. The 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 upscale neighborhoods, brimming with multi-million-dollar homes, are spread between Oakville, Toronto, and even Markham, offering a glimpse of the shifting tides in the real estate market. The prevalence of neighborhoods selling below the asking price has been on the rise since June. However, the trend seems to be mellowing. Between July and August, the percentage of underbidding neighborhoods surged from 57 percent to 71 percent, but September saw a smaller month-over-month increase, hinting at a potential equilibrium. The 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 neighborhoods tell a different story, where buyers are willing to pay above the asking price to secure their piece of the GTA’s real estate pie. Zoocasa’s recent analysis mirrors this trend, focusing on homes selling below their list price. The average list price of major cities across the GTA was compared to actual sale prices in September. In King, Ont., a traditionally expensive area, homes are being sold at a 36 percent discount from the average listing price of $3.2 million, with an average sale price of $2.05 million. Halton Hills stands out with the most significant difference, as homes are selling for 43 percent below the list price, averaging $1.08 million, compared to the average list price of $1.9 million. Caledon follows closely, with homes selling for 42 percent less than their average list price of $2.36 million at an average sale price of $1.37 million. In contrast, Orangeville experiences the smallest gap between listing and selling prices, with homes selling for just 10 percent less than the average list price of $908,000, at an average sale price of $817,000. Meanwhile, Oshawa takes the title for the most affordable city on the list, with an average price of $757,000, 14 percent less than the average listing price of $876,000. In the ever-shifting landscape of the GTA’s real estate market, the balance of power between buyers and sellers continues to sway. As autumn unfolds, it remains to be seen whether the chill in the air will bring more equilibrium to this high-stakes game or intensify the competition among those seeking their dream home.Underbidding vs. Overbidding: A Shift in Wealth
Balancing the Scales: Signs of Change
List Price vs. Sale Price: A Complicated Dance
