Homes sold for under the asking price in these Ontario communities
Published December 10, 2024 at 10:24 am
The real estate market remains in a slump as many homes are selling for under the list price in the GTA and across Ontario.
About 75 per cent of homes were sold for below the list price in November in the GTA, up from 70 per cent in October, according to the latest report from digital real estate platform Wahi.
There have been several examples of homes selling for under asking or at a loss recently. A Brampton home sold for a $520,000 loss in November. Another Brampton home sold for a $487,000 loss in September, and a home sold for $700,000 under the asking price in Mississauga in October.
Early expectations for a rebound in the Greater Toronto Area’s housing market in spring 2024 didn’t materialize, Wahi notes in the report. While the Bank of Canada rate cuts brought some affordability relief for homebuyers and existing owners, it was not enough to spark a major turnaround, the report notes.
Wahi found the condo market was hit hardest in 2024 overall. Condo sales were down five per cent while the number of single-family homes changing hands in the GTA edged upwards two per cent. On the pricing front, condos posted a three per cent decline, surpassing the two per cent drop in the single-family home segment. Condos also took nine days longer to sell on average.
Every month, Wahi compares the differences between median list and sold prices to determine whether neighbourhoods are in overbidding or underbidding territory, excluding those with fewer than five transactions.
For much of the year, the majority of the GTA’s approximately 400 neighbourhoods have seen prices bid down.
Wahi notes that a variety of factors can influence overbidding and underbidding activity. For instance, in addition to seasonality, sellers may list their homes for lower prices in hopes of sparking a bidding war.
Milliken Mills West also appeared on Wahi’s five of the hottest neighbourhoods list. The four other neighbourhoods were the Danforth, Richmond Hill’s Rouge Woods, Raymerville and Victoria Square.
Places where homes are selling below the list price are more common. As of November, 91 per cent of GTA neighbourhoods were in underbidding territory up from 88 per cent in October.
Wahi found the top five underbidding neighbourhoods in November were outside of Toronto’s core.
