Despite a small surge just before the official start of spring, bidding activity on homes in the GTA largely seized up in March thanks to the ongoing trade war between Canada and the U.S.
These economic and political uncertainties have convinced many prospective buyers to put their dreams of homeownership on hold, and as a result, homes in certain areas of the GTA are seeing bids well below their listing prices.
A recent analysis by the digital real estate platform Wahi compared the differences between list and sold prices in roughly 400 neighbourhoods across the GTA. At the end of each month, the platform compares the differences between median list and sold prices to determine whether neighbourhoods are in overbidding or underbidding territory.
Source: Wahi.
Data was sourced from Information Technology Systems Ontario (ITSO) and the Toronto Regional Real Estate Board (TRREB).
According to the report, approximately 20 per cent of GTA neighbourhoods with at least five sales were in overbidding territory in March, which is unchanged from February but down from 43 per cent just a year ago. On the other hand, the majority (73 per cent) remained in underbidding territory, with an additional seven per cent at asking.
Source: Wahi.
The last time most GTA neighbourhoods were overbidding territory was back in June 2023.
“Given all the economic uncertainty, some homebuyers could be holding off on making a purchase,” said Wahi CEO Benjy Katchen. “Those who are going ahead with their homebuying plans are benefiting from less competition.”
Source: Wahi.
When observing all sales in the GTA in March, 65 per cent sold for less than the listed price, which is also unchanged from February and up from March 2024, when 53 per cent of homes sold below their listed price.
Interestingly, condos were more likely to sell for below asking (75 per cent), compared to single-family homes (58 per cent).
Source: Wahi.
The platform notes that when a neighbourhood is in overbidding territory, it doesn’t necessarily mean that every home that is listed is selling above asking — it’s more so a general reflection of market behaviour.
