The Greater Toronto Area’s (GTA) real estate market has witnessed a swift transformation, shifting from rampant overbidding earlier this year to a surge in underbidding in August. Wahi’s recent analysis reveals that 70 per cent of the 245 GTA neighbourhoods have now entered underbidding territory.
To put that into perspective, nearly 70 per cent of neighbourhoods were in overbidding territory at the beginning of the summer, and according to Wahi, August saw the highest share of underbidding neighbourhoods since February.
Underbidding on the rise
A closer look at the data reveals that the underbidding trend is not uniform across all types of housing. Condos, for instance, witnessed underbidding in nearly 80 per cent of GTA neighbourhoods last month, while ground-oriented housing, including detached, semi-detached, row homes, and townhouses, experienced underbidding in just over 60 per cent of neighbourhoods, suggesting there’s more competition for traditional housing options compared to condos.
Unpacking the data
To identify overbidding and underbidding neighbourhoods, Wahi compares median list and sold prices for all types of homes, excluding neighbourhoods with fewer than five transactions in a month. CEO Benjy Katchen notes that expensive neighbourhoods are more likely to see underbidding, with August following this trend.
Overbidding and underbidding neighbourhoods
| Top Overbidding Neighbourhoods | Overbid % | Median sold price |
| 1. Ajax, Pickering | 15% | $1,450,000 |
| 2. Wismer, Markham | 13% | $1,070,100 |
| 3. Morningside Heights, Scarborough | 9% | $1,145,000 |
| 4. Westbrook, Richmond Hill | 7% | $1,610,000 |
| 5. Brownridge, Vaughan | 7% | $1,400,000 |
Meanwhile, the median sale prices found in the top underbidding neighbourhoods were higher, ranging between $1.9 million and $4.6 million.
| Top Underbidding Neighbourhoods | Underbid % | Median sold price |
| 1. Trafalgar, Milton | -10% | $2,100,000 |
| 2. Eastlake, Oakville | -7% | $2,540,000 |
| 3. Mineola, Mississauga | -7% | $2,162,944 |
| 4. Catchet, Markham | -5% | $1,900,000 |
| 5. York Mills, North York | -4% | $4,400,000 |
Near-term opportunities for buyers
With the rise in underbidding neighbourhoods and the Bank of Canada pausing interest rate hikes, prospective buyers may find themselves in a better position to enter the market.
However, Katchen reminds us, “When the Bank of Canada paused rate hikes earlier this spring, we began seeing confidence return to the market,” adding, “It’s too early to tell what’s going to happen next…”
Wahi Brokerage has one listing today.
Wahi Brokerage has 10 agents today.
Wahi staff has a grand total career sales of how many exactly?
How many listings in their entire careers have their agents taken ?
You would be shocked at just how few sales and listings we are talking about here.
Hi Connie,
Thanks for reading. Just to clarify, we report on Wahi’s analysis of TRREB’s market data.