Last month, eight of Ontario’s 10 largest cities (outside of the GTA) were experiencing underbids on homes, a report from Wahi shows.
Barrie, Guelph and Hamilton were at the top of the list, with median sale prices bid down by 3 per cent compared to median list prices.
Two cities in overbidding conditions
The two locations experiencing overbidding conditions were Kitchener and Cambridge, both within the Regional Municipality of Waterloo.
The digital real estate platform identifies overbidding and underbidding housing markets by comparing differences between median list and sold prices for all home types.
209 neighbourhoods being underbid, plus more in the GTA
Wahi’s CEO, Benjy Katchen, mentions, “The effects of higher interest rates are being felt in real estate markets across southern Ontario. That said, for homebuyers who are able to afford the higher monthly mortgage payments in the near term, now could be a great time to potentially purchase a home due to having a greater selection of properties for sale and potentially being able to cut a sharper deal than just a few months ago.”
The report shows that last month, 209 neighbourhoods (74 per cent) were underbid, which was the smallest month-over-month increase (of 3 per cent) in underbid neighbourhoods for the year.
What’s more, the GTA neighbourhoods in the same situation have risen since June – at that time, 35 per cent of them were selling below asking. The increase between July and August was quite large, at 14 per cent.
“A number of (southern Ontario cities) considerably more affordable”
Katchen advises prospective buyers to, “Make sure you really understand the data and bidding dynamics in your desired area. You might also want to consider looking outside the GTA. Not only are the vast majority of the biggest southern Ontario cities outside the GTA in underbidding territory, a number of them are also considerably more affordable.”