{"id":311918,"date":"2025-09-04T11:18:24","date_gmt":"2025-09-04T15:18:24","guid":{"rendered":"https:\/\/wahi.com\/ca\/en\/?p=311918"},"modified":"2025-09-04T11:18:33","modified_gmt":"2025-09-04T15:18:33","slug":"98-of-gta-neighbourhoods-are-in-underbidding-territory-2","status":"publish","type":"post","link":"https:\/\/wahi.com\/ca\/en\/learning-centre\/real-estate-101\/buy\/gta-market-pulse-august-2025\/","title":{"rendered":"98% of GTA Neighbourhoods Are in Underbidding Territory"},"content":{"rendered":"

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url=”https:\/\/www.instagram.com\/wahi.inc\/” icon_color=”#BC4E40″ _builder_version=”4.20.2″ _module_preset=”default” background_color=”RGBA(255,255,255,0)” background_enable_color=”on” global_colors_info=”{}” follow_button=”off” url_new_window=”on”]instagram[\/et_pb_social_media_follow_network][et_pb_social_media_follow_network social_network=”facebook” url=”https:\/\/www.facebook.com\/wahiinc\/” icon_color=”#BC4E40″ _builder_version=”4.20.2″ _module_preset=”default” background_color=”RGBA(255,255,255,0)” background_enable_color=”on” global_colors_info=”{}” follow_button=”off” url_new_window=”on”]facebook[\/et_pb_social_media_follow_network][\/et_pb_social_media_follow][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”15px||0px|||” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.27.4″ _module_preset=”default” 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Underbidding activity continued to intensify in the Greater Toronto<\/a> Area\u2019s housing market last month, with only four neighbourhoods seeing prices bid up. <\/span><\/p>\n

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By Josh Sherman<\/a>\u00a0<\/span>| 4 minute read<\/p>\n

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You could count the number of GTA<\/a> neighbourhoods in overbidding territory last month on one hand.<\/span><\/p>\n

[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”32px||23px|||” da_disable_devices=”off|off|off” locked=”off” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”11px||14px|||” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.27.4″ _module_preset=”default” text_font_size=”21px” text_line_height=”1.6em” header_2_font=”||||||||” header_2_font_size=”36px” header_2_line_height=”1.3em” header_3_font_size=”1.25rem” header_3_line_height=”1.88rem” header_4_font=”|700|||||||” header_4_font_size=”1.25rem” header_4_line_height=”1.88rem” text_font_size_tablet=”21px” text_font_size_phone=”16px” text_font_size_last_edited=”on|phone” header_2_font_size_tablet=”36px” header_2_font_size_phone=”25px” header_2_font_size_last_edited=”on|phone” global_colors_info=”{}”]<\/p>\n

Homebuyers had already been holding the cards in the Greater Toronto Area for some months, but they were dealt an even stronger hand in August as the share of neighbourhoods in underbidding territory across the region matched a three-year high.<\/span><\/p>\n

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In August, 98% of the 278 GTA neighbourhoods with at least five home sales during the month landed in underbidding territory, with the rest selling at or above asking.<\/p>\n

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This represents an increase from July, when 95% of neighbourhoods were underbid<\/a>, as well as compared to the same time a year ago, when the share of underbid neighbourhoods reached 89%.<\/p>\n

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August represents just the third time since Wahi began tracking GTA homebuying competition in July of 2022 that underbidding has been so widespread at the neighbourhood level. In both December 2023 and January 2024, 98% of neighbourhoods were also in underbidding territory.<\/span><\/p>\n

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\u201cThe summer months are typically softer than the spring for home sales, but the extent of underbidding activity we\u2019re witnessing in the GTA suggests there\u2019s more at play than homebuyers taking vacations,\u201d says Wahi Economist Ryan McLaughlin.<\/p>\n

\u201cThe condo market downturn is part of the story, but we\u2019re also seeing more underbidding activity in the single-family home segment,\u201d McLaughlin continues.<\/p>\n

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For example, when looking only at single-family home sales, 94% of the 223 neighbourhoods with at least five transactions of this property type were underbid last month. That nearly matches the extent of underbidding in the condo market. Some 97% of the 102 neighbourhoods with at least five condo sales were in underbidding territory.<\/p>\n

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McLaughlin notes that in addition to seasonal factors limiting homebuying activity \u2014 and, consequently, competition \u2014 listings sometimes appear bid down because sellers may not have set realistic prices to begin with. Conversely, a neighbourhood could be overbid as a result of sellers listing homes below market value in hopes of attracting multiple offers.<\/span><\/p>\n

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GTA-wide, 79% of homes that changed hands in August sold for less than the list price, up from 76% in July and 71% a year ago.<\/span><\/span><\/p>\n

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