It's been a pivotal few years for Toronto-area real estate, with fewer homes finding new owners than ever in recent memory, all while the market is inundated with tens of thousands of new listings that are sitting unsold for weeks.
As unbelievably stressful as this period has been for sellers, realtors and developers, it has given aspiring buyers a serious leg up, with far greater selection and the newfound power to barter down prices.
As such, more and more homes in and around the city are selling for under their asking price, a complete 180 from what was once the norm in a city known to be overvalued and popular for bidding wars.
Imbalance between supply and demand in Toronto's housing market hits all-time record https://t.co/sMiSc6ejlx
— blogTO (@blogTO) June 4, 2025
The latest report on the trend, published by local agency Wahi on Thursday, shows that the market's downfall is still going strong, with more neighbourhoods now in "underbidding territory."
According to the release, the vast majority of the region is seeing home sales running below what sellers were hoping to earn, with 87 per cent of GTA communities considered underbid, on average, as of April. This is a slight uptick from March, when this figure was 84 per cent.
As Wahi explains, the condo sector has fallen the hardest, with a staggering 98 per cent of condo-heavy neighbourhoods now deemed to be in underbidding territory.
"Single-family homes also showed signs of softening, with 79 per cent of neighbourhoods underbid compared to 76 per cent the previous month," the experts added.
By comparison, they note that just one year ago, only some 60 per cent of neighbourhoods in the GTA were mostly underbid, versus 36 per cent that were overbid, and 4 per cent where most homes were selling right around asking. And, this was after the downturn of the market had already begun.
Toronto condo sales plunge to historic lows not seen since the mid-1990shttps://t.co/JOCRCYUads
— blogTO (@blogTO) January 16, 2025
Based on Wahi's data, the top five neighbourhoods for underbidding, by dollar amount, in the GTA are now:
And, the top five neighbourhoods for overbidding, by dollar amount, are:
Though Wahi adds that the underbidding pattern "doesn't necessarily mean properties are selling for below market value," the hit to the countless sellers who bought during the many years that homes in Toronto sold for far more than they may actually be worth are likely hesitant to take such a loss, and are understandably devastated at the prospect.
ACHPF/Shutterstock.com
Join the conversation Load comments