Homes sold for more than 40% under asking in some parts of the GTA: report

Home prices remained high across the GTA last month, but that didn’t stop some communities from shifting into a buyer’s market and seeing properties sell for well below asking price.

A recent breakdown of real estate numbers across Southern Ontario found that while sales were generally down in September, many areas saw the average sale price of homes drop below the average asking price.

Some municipalities like Brampton (average list price $1,183,632) and Ajax (average list price $1,137,451) saw a gap of 11.98 per cent and 12.68 per cent respectively between the average sale and list prices. But others like Caledon (average list price $2,356,199) and Halton Hills average list price ($1,899,398) had the largest differentials 42.12 per cent and 42.94 per cent.

In Halton Hills, that difference translates to a more than $815,600 gap between the average price sellers are listing and what homebuyers are actually paying, while Mississauga had an average asking price of $1,355,825 in September and an average sale price of $1,021,324 for a difference of 24.67 per cent of $334,501.

All of the more than 30 municipalities examined in the report had an overall average sale price below the average list price, but Orangeville had the smallest difference between asking price ($908,292) and sale price ($756,906) at 10.9 per cent for a difference of more than $151,300.

Zoocasa says that based on the September numbers, Oshawa and Orangeville are the “most affordable” cities on the list, having an average price of $756,906, 13.60% lower than the average list price of $876,004.

The report says that the ratio of sales to new listings (SNLR) across Southern Ontario and the GTA reflects sellers struggling as over a dozen regions including Brampton, Milton, Ajax have been classified as being in a buyer’s markets while another 16 “are in a balanced state.”

“While prices haven’t exactly declined in the GTA, sellers are having a tougher time due to the decline in interest driven by a lack of affordability,” the report reads. “Many homes are selling for less than their listing price, while others are sitting on the market for long periods of time as those selling are less willing to budge.”