Competition among homebuyers in the Greater Toronto Area (GTA) reached new heights last month as more neighbourhoods entered the realm of overbidding. 

According to a recent analysis by Wahi, 68 per cent of GTA neighbourhoods experienced overbidding in May, up from 57 per cent in April, reflecting a persistent upward trend throughout the year. 

Wahi compares the differences between list and sold prices for all types of homes, including condo units and houses, to identify overbidding and underbidding neighbourhoods each month. 

Neighbourhoods with fewer than five transactions in a given month are excluded. Based on these criteria, 222 of 326 neighbourhoods were in overbidding territory last month. 

 

Markham tops the list for overbidding

 

Markham continues to dominate the list of neighbourhoods experiencing overbidding, with four out of the top five spots. Seaton Village, located in Toronto, is the only outlier. 

 

1. Wismer, Markham

• • Overbid: 25 per cent
  • Median overbid amount: $300,000
  • Median sold price: $1,393,000

2. Raymerville, Markham

• • Overbid: 22 per cent
  • Median overbid amount: $303,000
  • Median sold price: $1,718,800

3. Cathedraltown, Markham

• • Overbid: 20 per cent
  • Median overbid amount: $305,000
  • Median sold price: $1,735,000

4. Seaton Village, Toronto

• • Overbid: 20 per cent
  • Median overbid amount: $266,000
  • Median sold price: $1,481,800

5. Buttonville, Markham

• • Overbid: 14 per cent
  • Median overbid amount: $240,000
  • Median sold price: $1,828,000

 

Factors such as low inventory levels and sellers and their agents listing homes below market value have contributed to the overbidding trend observed in Markham.

Underbidding territory

 

In the midst of widespread overbidding, a handful of neighbourhoods fall into the category of underbidding territory. 

 

1. York University Heights, North York

• Median sold price: $630,000
• Median underbid amount: -$4,000

2. Yorkdale, North York

• Median sold price: $646,000
• Median underbid amount: -$4,500

3. Erin Mills, Mississauga

• Median sold price: $660,000
• Median underbid amount: -$14,000

4. Concord, Vaughan

• Median sold price: $670,000
• Median underbid amount: -$9,000

5. Smithfield-Clairville, Etobicoke

• Median sold price: $695,500
• Median underbid amount: -$4,900

 

Beyond the top five, neighbourhoods with lower median prices tend to have a higher concentration of condo units, which contributes to the overall affordability.

 

1. Corktown, Old Toronto

• Median sold price: $700,000
• Median underbid amount: -$9,000

2. St. Lawrence, Old Toronto

• Median sold price: $710,000
• Median underbid amount: -$9,900

3. Fort York, Old Toronto

• Median sold price: $715,000
• Median underbid amount: -$11,500

4. Thornhill, Markham

• Median sold price: $718,500
• Median underbid amount: -$4,000

5. Liberty Village, Old Toronto

• Median sold price: $721,250
• Median underbid amount: -$3,400

High-end neighbourhoods lead underbidding charge

 

While the majority of neighbourhoods in the GTA experienced overbidding or sold at the asking price, some affluent areas saw underbidding activity. 

1. Hoggs Hollow, North York

• • Underbid %: -5%
  • Median underbid amount: -$92,750
  • Median sold price: $1,705,000

2. Southwest Oakville

• • Underbid %: -4%
  • Median underbid amount: -$84,000
  • Median sold price: $1,842,500

3. Old Oakville

• • Underbid %: -3%
  • Median underbid amount: -$79,000
  • Median sold price: $2,350,000

4. Vales of Humber, Brampton

• • Underbid %: -3%
  • Median underbid amount: -$63,500
  • Median sold price: $2,300,000

5. Forest Hill, Old Toronto

• • Underbid %: -2%
  • Median underbid amount: -$62,500
  • Median sold price: $3,220,000

These neighbourhoods are known for larger detached homes and tend to have smaller price differences between list and sale prices.