The Greater Toronto Area (GTA) housing market saw a noticeable drop in bidding competition this July, marking the fourth consecutive month of decline, according to Wahi.
Only 14 per cent of GTA neighbourhoods experienced overbidding, down from 27 per cent in June, as homebuyers took advantage of nearly 10,000 more active listings compared to last year.
“The spring selling season that never was has been followed by a slower-than-usual summer,” says Wahi CEO Benjy Katchen. That said, Katchen notes that homebuyers have a lot of choice, which is “helping more buyers negotiate better deals and purchase homes below-asking.”
Sales and price drops, longer days-on-market
Despite a 12 per cent year-over-year drop in sales with 4,991 homes sold in the GTA, the median price of a home fell slightly by 2.0 per cent, settling at $960,000.
Homes also stayed on the market longer, with the average number of days increasing to 24, up from 17 last July.
Overbidding and underbidding in the GTA
The GTA’s share of overbid neighbourhoods was down year-over-year. In July 2023, more than a third (38 per cent) were in overbidding territory. Now, this share has dropped to the lowest level since January, which saw zero per cent of neighbourhoods overbid.
For only single-family homes specifically, 23 per cent of neighbourhoods were overbid, compared to 6.0 per cent for condominiums.
As for underbidding, for the 14th consecutive month, Oakville’s Eastlake was in the top five and is the only carryover from June’s top five.
Hamilton: ‘Showing more signs of life than some Ontario cities’
In contrast, Hamilton’s housing market is experiencing a resurgence in competition. Wahi reveals that 18 per cent of Hamilton neighbourhoods were in overbidding territory, a significant jump from 7.0 per cent in the first quarter.
Central Hamilton neighbourhoods, in particular, had the strongest bidding activity, with the majority of overbidding neighbourhoods and four of the top five located there.
The city saw 2,221 homes sold at a median price of $780,000.
“Hamilton is showing more signs of life than some Ontario cities,” notes Katchen. “It will be interesting to see whether the Bank of Canada’s July rate cut encourages more bidding competition in the third quarter.”
