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GTA sees growing trend of homes selling below list price

As the autumn chill sets in across the Greater Toronto Area (GTA), the region’s real estate market is experiencing equally frosty conditions. While property prices have remained relatively stable, declining interest from buyers has resulted in stiffer competition among sellers. 

According to Wahi’s September 2023 Market Pulse Report, approximately 74 per cent of GTA neighbourhoods are now in underbidding territory — meaning more homes are selling for less than list price. Overall, the September report reveals 209 neighbourhoods were underbid, compared to 67 in overbidding territory and eight where homes were selling at asking price. 

“The top underbidding neighbourhoods this year have typically been more expensive, while the top overbidding neighbourhoods have tended to be neighbourhoods with lower home prices,” says Wahi CEO Benjy Katchen. “This trend continued in September,” he adds.

The most underbid GTA neighbourhoods in September are known for their multi-million-dollar homes and are equally distributed between Oakville and Toronto proper, with one Markham neighbourhood also making the top five.

 

The GTA’s top underbidding neighbourhoods: September 2023

Neighbourhood Underbid % Median sold price
Southwest Oakville -6% $3,362,494
Eastlake, Oakville -5% $4,800,000
Cachet, Markham -4% $2,168,000
Lawrence Park, Toronto -3% $4,080,000
Ledbury Park, Toronto -3% $2,700,000

 

The share of neighbourhoods where homes are selling under asking price has been on the rise since June, although the trend appears to be showing signs of easing. For example, between July and August, the percentage of underbidding neighbourhoods surged from 57 per cent to 71 per cent, while September experienced a comparatively smaller month-over-month increase.

Despite this widespread underbidding activity in the GTA housing market, there are still numerous neighbourhoods where homebuyers generally paid over the asking price. Wahi’s report notes three areas where double-digit increases were seen between median list and sold prices. As realtors know, this could be influenced by sellers listing their homes below market value to attract more attention.

 

The GTA’s top overbidding neighbourhoods: September 2023

 

Neighbourhood Overbid% Median sold price
Little Portugal-Brockton Village, Toronto +17% $1,195,100
Bathurst Park, Toronto +12% $1,395,000
Milliken Mills West, Markham +10% $1,380,000
Bayview Woods, Toronto +9% $1,456,000
Berczy Village, Markam +8% $1,773,000

List price vs. sale price

 

Zoocasa’s recent analysis reveals a corresponding trend in terms of homes selling below their list price. The company looked at average list price of major cities across the GTA and compared those to how much homes sold for in September. 

King, Ont., traditionally one of the most expensive areas in the GTA, homes are selling at a 36 per cent discount from the average listing price of $3.2 million, with an average sale price of $2.05 million.

Halton Hills stands out with the most significant difference, as homes are selling for 43 per cent below list price, with an average sale price of $1.08 million compared to an average list price of $1.9 million. Caledon follows closely, where homes are selling for 42 per cent less than their average list price of $2.36 million, with an average sale price of $1.37 million.

Orangeville has the smallest gap between listing and selling prices, with homes selling for just 10 per cent less than the average list price of $908,000, at an average sale price of $817,000. Meanwhile, Oshawa is the most affordable city on the list, with an average price of $757,000 which is 14 per cent less than the average listing price of $876,000.

Source: Zoocasa

 

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