68% of homes sold for less than the list price in the Greater Toronto Area in May

The Greater Toronto Area’s housing market continued to slip deeper into underbidding territory in May, a new report finds.

Despite spring normally being one of the busiest for home-buying activity, a report from digital real estate platform Wahi finds most homes are selling for under the list price.

Wahi found home prices were bid down in 87 per cent of GTA neighbourhoods, up from 84 per cent in April. In the remaining 13 per cent of neighbourhoods, sale prices surpassed list prices.

A year ago, 60 per cent of neighbourhoods were in underbidding territory, 36 per cent were overbid, and four per cent were selling at asking, Wahi said. Neighbourhoods with fewer than five sales during the month were excluded from the analysis.

“Many homebuyers are negotiating lower prices in the GTA today, but that doesn’t necessarily mean properties are selling for below market value,” said Wahi CEO Benjy Katchen. “Some sellers have been slow to adjust their expectations from when the market was booming and continue to list too high.”

Overall, 68 per cent of all homes that sold in the month of May, regardless of the neighbourhood, changed hands for less than the list price, up one percentage point from April, Wahi found. The uptick is due to more single-family homes selling below asking. While the share of condos selling below asking remained steady at 78 per cent in May, it increased to 64 per cent for single-family homes, up from 61 per cent in April.

There were more homes on the market and sales were down across the GTA in May, according to the latest report from the Toronto Regional Real Estate Board. There were 6,244 home sales through TRREB’s MLS system in May 2025 – down by 13.3 per cent compared to May 2024. New listings amounted to 21,819 – up by 14 per cent year-over-year.

Homes are also taking longer to sell. In Mississauga, the average property days on market increased from 36 days to 41 days in May.

The neighbourhoods with the most underbidding were distributed across three regions — the City of Toronto as well as York and Halton regions, respectively, Wahi found. Three were carryovers from April: Lawrence Park, York Mills and Eastlake.

Eastlake has placed in the top five for underbidding more than any other neighbourhood in the GTA. Wahi said this could be due to the prevalence of newer custom homes, which can be more difficult to price.

Once again, four of the most overbid neighbourhoods in the GTA were found within the City of Toronto. In recent months, the top overbidding neighbourhoods have been increasingly concentrated in the city.

March was the first time since Wahi began tracking bidding competition in July of 2022 that each of the top five overbidding neighbourhoods were in Toronto proper. Since then, the majority of leading overbidding neighbourhoods have been in the 416 area code.

In general, the single-family home segment has held up considerably better than the condo market. However, the single-family segment is showing increased signs of softening.

Counting only condo sales, 98 per cent of GTA neighbourhoods were underbid in May compared to 97 per cent last month and 89 per cent in April 2024. Meanwhile, for single-family homes, the share of neighbourhoods in underbidding territory was 79 per cent, up from April (76 per cent) and a year ago (44 per cent).

See the full report from Wahi here.

Lead photo: RDNE Stock project