GTA Housing Market Sees Decline in Overbidding Amidst High Listings and Affordability Challenges
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Last month, the Greater Toronto Area (GTA) saw a continued decline in the number of neighbourhoods experiencing overbidding on home sales for the third consecutive month, even after the Bank of Canada cut interest rates by 25 basis points. According to Wahi, 27% of GTA neighbourhoods with at least five home sales in June experienced overbidding, down from 36% in May and 39% in April. CEO Benjy Katchen noted that despite the rate cut, affordability challenges and an abundance of listings have subdued bidding competition.
Katchen highlighted that the market had 24,000 active listings, the highest in several years, giving buyers more choices than they have had in the past five years. This has led to 71% of neighbourhoods being in underbidding territory and only 2% selling at the asking price. Single-family homes saw 39% of neighbourhoods in overbidding territory, down from 53% in May, while condominiums had only 7% of neighbourhoods in overbidding territory, a slight decrease from 11% in May.
In June, the top five overbidding neighbourhoods were predominantly in York Region, including Doncrest, Rouge Woods, Royal Orchard, and Milliken Mills West, which generally had lower price points. The top underbidding neighbourhoods included two areas in Peel Region, Mineola and Huttonville, differing from May, which featured pricier Oakville neighbourhoods. This trend underscores the varied bidding activity across different regions and property types within the GTA.
Raed the full article on: REAL ESTATE MAGAZINE
