New analysis from digital real estate platform Wahi finds overbidding was less widespread across the Greater Toronto Area this June than during the previous month.
The Greater Toronto Area’s housing market looked a little less competitive last month, opening the door for more homebuyers to potentially get deals as the spring market frenzy wound down.
In June, 62% of GTA neighbourhoods were in overbidding territory, compared to 68% in May, according to new analysis from Wahi. To identify overbidding and underbidding neighbourhoods each month, Wahi compares the differences between list and sold prices for all types of homes, including condo units and houses. Neighbourhoods with fewer than five transactions in a month are excluded from calculations.
Overall, 203 of 326 neighbourhoods were overbid in June, down from 222 out of 326 in the previous month. The month-over-month decline in the share of overbidding neighbourhoods is the first since January, when just 9% of neighbourhoods were in overbidding territory, a decline from the 12% observed in December 2022.
Wahi CEO Benjy Katchen says that although the Bank of Canada’s June rate hike — which only some experts anticipated — may have pushed some would-be buyers to the sidelines, there is also likely a seasonal element at play. “Last summer, overbidding levels remained lower until the arrival of the typically busier fall market,” Katchen explains. “To an extent, a decline of overbidding activity heading into the summer is to be expected.”
Neighbourhood | Overbid (%) | Median overbid amount ($) | Median sold price |
1. Victoria Square, Markham | +26% | +$322,100 | $1,600,000 |
2. Broadview North, Toronto | +23% | +$276,000 | $1,500,000 |
3. Berczy Village, Markham | +19% | +$270,001 | $1,550,000 |
4. Bickford Park, Toronto | +19% | +$235,500 | $1,509,444 |
5. Rouge Woods, Richmond Hill | +18% | +$252,400 | $1,647,500 |
*Neighbourhoods are ranked according to calculations based on percentage changes between list and sale prices
Neighbourhood | Underbid % | Median underbid amount | Median sold price |
1. Summerhill, Toronto | -10% | -$195,000 | $2,175,000 |
2. Southwest Oakville | -5% | -$159,400 | $2,837,500 |
3. Chaplin Estates, Toronto | -4% | -$95,000 | $2,300,000 |
4. Eastlake, Oakeville | -3% | -$96,200 | $2,650,000 |
5. King, York region | -3% | -$59,000 | $1,957,860 |