Homes are still selling for far under asking price in the vast majority of the Toronto area

Toronto’s real estate market may finally be seeing progressively more sales after a months-long slump, but the industry is still nowhere close to its usual frenzied pace — and it’s buyers who are reaping the rewards.

With so many properties available and activity for some housing types (read: condos) dropping to unheard-of lows in 2024, some are taking advantage of lower interest rates and higher negotiating power to ease into what still remains a vastly overpriced market.

And, as unaffordable as property remains, many are nabbing homes for cheaper than their list price, contrary to the bidding wars of yore.

According to the latest report from real estate platform Wahi, which keeps tabs on selling versus asking prices in the region each month, an incredible 93 per cent of GTA neighbourhoods were in “underbidding” territory in December, meaning most sellers accepted lower offers than they were hoping.

When looking at condos specifically, this figure drops to an unthinkable 99 per cent of neighbourhoods, with 80 per cent of all units sold across the region changing hands for under list price.

How the prevalence of bidding wars has changed over the last 12 months, courtesy of Wahi.

These are notable jumps from November, which itself saw more underbidding activity than October, even while the number of sales transactions and general buyer interest is back on the rise.

“GTA condo buyers have been able to negotiate lower prices in part because supply levels remain high. There are also fewer condo buyers in the market, so there’s less bidding competition,” Wahi’s staff write.

“While the number of single-family homes available for sale right now remains high compared to the long-run norm, there’s more buying competition for houses.”

As for where the best deals were found, the firm indicates that some of the bougiest pockets of the region are seeing the most dramatic savings by virtue of the homes being more expensive to start with.

The most underbid neighbourhoods in the Toronto area in December 2024, courtesy of Wahi.

Houses in Oakville’s Eastlake community — where the average selling price was a staggering $3.153 million in December — were the most underbid, by a median of $191,000.

This was followed by Forest Hill in Toronto (average sale price of $2.37 million, underbid by an average of $132,450); King in King City (price: $2.75 million, underbid by around $108,000); Glen Park in North York ($1.53 million/$70,800) and Snelgrove in Brampton (where homes were going for about $1.17 million, underbid by an average of $63,000).

In contrast, the hottest neighbourhoods where buyers were willing to bid up home prices were Fletcher’s West in Brampton (with a median sold price of $1.04 million, overbid by an average of $101,000); Wexford in Scarborough (price: $962,440, overbid by around $64,001); The Danforth in Toronto ($1.17 million/$53,500); Pickering Beach in Ajax ($733,750/$26,100) and Milliken Mills West in Markham (where homes go for around $1.3 million, overbid by approximately $24,500).

It must be noted, though, that agents often price homes strategically — lower to garner more interest and encourage multiple bidders, or higher if they think there is enough enthusiasm that someone will happily pay that amount.

The most overbid neighbourhoods in the Toronto area in December 2024, courtesy of Wahi.

“Convenient locations and more affordable price points have driven demand in these neighbourhoods even amid overall cooler market conditions,” reads the report.

It adds that new mortgage rules in Canada, which include expanded eligibility for 30-year amortizations and a higher cap on insured mortgages up to $1.5 million, means “more buyers can potentially purchase single-family homes without a 20 per cent downpayment,” unlocking home ownership for more people, even amid sky-high prices.