Toronto’s real estate market experienced a significant slowdown in November, with transaction volume falling 56 per cent year-over-year to its lowest level since April 2020, according to recent data from Wahi.
The company is sharing insights from its Market Pulse tool, which tracks overbidding and underbidding in the Greater Toronto Area’s (GTA) real estate market.
Decrease in transaction volume and listings
According to Wahi, the decrease in transactions in Toronto was accompanied by an increase in the average days on market, which rose 241 per cent to a three-year high of 57 days.
New listings in the city also fell 19 per cent year-over-year, marking the slowest month since January 2022. The slowdown was led by a 13 per cent drop in detached home prices, although this was offset by a five per cent increase in condo prices.
Wahi notes similar trends in the surrounding areas of Peel, York, Durham, and Halton, with transaction volumes and new listings all declining year-over-year. Home prices also fell in these areas, with detached properties seeing the largest decrease.
Overall, 88 per cent of GTA neighbourhoods were in underbidding territory in November, up from 86 per cent in October. In contrast, only 15 per cent of neighbourhoods were in underbidding territory in November 2021. The median amount of underbidding was flat the previous month but drastically changed from last year when overbidding was $77,275.
From overbidding to underbidding
Some neighbourhoods, such as those in Markham, East York, Richmond Hill, and Oakville, were still seeing homes sell at or above asking prices, ranging from $1.2M to $1.65 million.
For condos, the total change from median overbidding to median underbidding year-over-year is $22,787. In November, the average condo sold for slightly less than asking at two per cent below the list price. In the same month last year, most condos were going over asking, but the median overbid amount was only $8,377.
In contrast, the change from median overbidding to median underbidding for detached, semi-detached, and townhouse properties was $159,450. These property types saw 81 per cent of neighbourhoods in underbidding territory, with a median underbidding amount of $26,450. In November 2021, most neighbourhoods were going over asking by $133,000
November’s slowdown was felt across the GTA, with transaction volumes, new listings, and home prices all declining year-over-year as prospective buyers and sellers wait on the sidelines to see what 2023 brings.
