These Toronto-area neighbourhoods are now in 'underbidding territory'
Those looking to buy a home in the Greater Toronto Area may be in luck as the majority of neighbourhoods saw houses sell for under the asking price last month, new analysis reveals.
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Real estate trends in the GTA last month Wahi, a Canadian real estate platform, published data on June 5, breaking down the trends in the GTA’s housing market this past May. The company scoured data sourced from the Toronto Regional Real Estate Board as well as Information Technology Systems Ontario, a system providing information on listings across various property types. (Evan Buhler/The Canadian Press)
Hundreds of neighbourhoods looked at Around 400 neighbourhoods across the region are looked at, and any area that saw at least five sales that month were included in the analysis. A total of 298 neighbourhoods met that threshold in May, up by nine compared from April. (Lars Hagberg/THE CANADIAN PRESS)
The GTA's housing market last month According to Wahi’s analysis, the prices of homes were bid down in 87 per cent of neighbourhoods across the Greater Toronto Area. Compared to this same time last year, 60 per cent of neighbourhoods were in underbidding territory. (Google Earth)
The remaining 13 per cent surpassed the listing prices, Wahi notes. This is roughly a third of what the numbers were like last year for overbidding areas, as the platform says 36 per cent of neighbourhoods saw bids above asking last year. (Graeme Roy/The Canadian Press)
The numbers are far different when it comes to the condo market alone. Based on Wahi’s May analysis, 98 per cent of GTA neighbourhoods were underbid for these types of properties, up by nine per cent compared to April 2024. (Chris Young/The Canadian Press)
Detached homes are the most sought after Breaking it down to take a look at single-family dwellings, 79 per cent of neighbourhoods were in the underbidding territory. (Richard Buchan/THE CANADIAN PRESS)
Unusual spring market for Toronto President and CEO of RPS-Wahi Benjy Katchen says this spring is a bit unusual, as typically spring and fall are busy season for the real estate industry. The real estate president concludes the economic uncertainty brought on by the trade war is partly to blame. (Richard Buchan/THE CANADIAN PRESS)
But that isn't dissuading homebuyers out right. As Katchen says there is a record number of people shopping for houses now.
“It’s just the buyers are a little bit more tentative,” Katchen said, adding sellers need to be a bit more realistic with pricing. (Richard Buchan/THE CANADIAN PRESS)
But what neighbourhoods saw the biggest impacts? Wahi notes that most underbid neighbourhoods popped up in Toronto, Halton and York Regions. The most underbid neighbourhood is Moore Park, a midtown Toronto community nestled just east of Yonge Street and south of Davisville Avenue.
The median sold price hovered at $3.9 million while the median underbid amount was $195,000 under the asking price.
What are the rest of the most underbid neighbourhoods? In second is Bayview Hill in Richmond Hill, with median sold prices at $2.59 million, it saw bids come in $190,000 below the asking price, while Toronto’s Lawrence Park comes third, at around $3.03 million, and saw bids come in under $164,500 the asking price. York Mills in North York and Eastlake in Oakville round out the rest of the top five. (Google Earth)
The platform’s president says affordability remains Canada’s biggest challenge, as more Canadians grow concerned of the strains on our local economy. “All these neighbourhoods are not your typical neighbourhood. They’re not condo neighbourhoods, they’re luxury detached,” Katchen said.
“These are neighbourhoods where your median house is selling for over $2.5 million or more (…) the biggest pressure, I think, (is) on price right now.”
Worries about tariffs, inflation and work “I think when you’re worried about inflation and you’re worried about tariffs and you’re worried about your job, if you could afford a $4 million house in Moore Park, you could probably also afford a $2 million condo somewhere or could afford to rent,” Katchen said.
“I think anybody, even if they’re relatively affluent, making that bet at that higher price point, I think even more confidence is required and therefore there’s less activity in those neighbourhoods right now, at least buying activity.”
(Google Earth)
What are the most overbid neighbourhoods in the GTA? Riverdale and the Junction in Toronto are the top two neighbourhoods in the Greater Toronto Area that saw bids above the asking price, with median overbid amounts hovering at $118,800 and $103,750 respectively. (Google Earth)
And the other most overbid neighbourhoods? Scarborough’s Birch Cliff, with median sold prices at $945,000, saw bids coming in $100,100 over asking. To round out the top overbidding neighbourhoods in the GTA is Bullock, Markham in fourth, and Leslieville, Toronto in fifth.
