Price Wars: The Toronto area’s average home price remains high, but low sales activity and a surge in homes are providing more options for potential buyers.
A report from Wahi shows that competition in the real estate market is dwindling, with only 27% of neighborhoods in “overbidding” territory last month, a decrease from 36% the previous month and 39% in April. The percentage decreased from 36% the previous month and 39% in April.
Underbidding is now the norm in 71% of 300 assessed neighborhoods, with condos most likely to go under their asking price, while only 7% of neighborhoods saw most units go for more than asking.
GTA Areas Hit Hardest by Low Offers in June
Residents in Mineola, Mississauga, Eastlake, Huttonville, Forest Hill, and King City are underbidding on real estate, with average offers $250,000 lower than asking prices in June.
The average buyer’s price in Oakville is $230,000 less than asking, followed by Huttonville in Brampton, Toronto’s Forest Hill, and King City.
Home prices in these areas, except Brampton, are high, with Mineola having the highest median sold price of $2.7 million.
Toronto’s most overbid neighbourhoods include Doncrest in Richmond Hill, Rouge Woods, St. Clair West, Royal Orchard, and Milliken Mills West, with buyers paying over asking prices.
Neighborhoods with the Highest Over-Asking Offers in June
Wahi’s executives argue a 25-basis-point rate cut is insufficient to revive a struggling housing market with affordability issues and increased listing options.
In June, a study reported 24,000 active listings, the highest in several years, despite the housing crisis now viewed as an affordability crisis.
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