Nearly 4 out of 5 homes sold for less than asking in the Greater Toronto Area

Nearly four out of five homes sold for less than the asking price throughout the Greater Toronto Area last month.

However, for several neighbourhoods with lower prices, there are lingering signs of stronger competition among homebuyers, according to the latest analysis from Canadian digital real estate platform and brokerage Wahi.

This November, 97 per cent of GTA neighbourhoods with at least five home sales during the month were in underbidding territory, while just three per cent saw multiple offers or other negotiations drive sale prices higher, Wahi found.

This is the second-highest share of underbidding at the neighbourhood level since Wahi began tracking bidding competition in July of 2022.

November’s numbers haven’t changed from October, when 98 per cent of neighbourhoods were underbid, matching all-time highs in December 2023 and January 2024.

They are also comparable to last November, during which time 91 per cent of neighbourhoods were underbid.

The average home selling price last month in the GTA, at $1,039,458, was down by 6.4 per cent compared to November 2024, according to the Toronto Regional Real Estate Board.

“Prices continue to fall in the GTA, but not enough to turn the tide on the region’s overall housing-affordability challenges,” said Wahi economist Ryan McLaughlin in the report.

In all but one of the nine neighbourhoods that landed in overbidding territory this November, the median list price was less than $1 million. This suggests that what competition remains in the market is concentrated in communities boasting relatively better affordability than the rest of the region, Wahi noted.

More than half of these neighbourhoods were located in Toronto, including the most overbid neighbourhood, Wychwood Park. Clarington in Durham Region placed third with a median overbid amount of $31,050.

In contrast to the neighbourhoods with the strongest home buying competition, the most underbid neighbourhoods last month had median prices between approximately $2 million up to about $4 million.

Oakville continued to have a strong presence among the GTA’s most underbid neighbourhoods. The waterfront neighbourhood of Eastlake, downtown Oakville’s neighbour to the northeast, took the number one spot. It has been in the top five for four consecutive months.

Last month, Eastlake was followed by southwest Oakville, making its second straight appearance in as many months in the top five. Like Eastlake, southwest Oakville is a waterfront community neighbouring downtown Oakville with above-average home prices.

In the third spot, King is another community known for upscale homes, as are the two entries from the City of Toronto (Lawrence Park and Casa Loma).

See the full report from Wahi here.

Lead photo: RDNE Stock project