Last month, the region's share of over-bid areas in the GTA fell for the third consecutive month, despite the Bank of Canada's interest rate cuts.
The 25 basis point cut “is not enough to provide further fuel to a housing market facing high home prices and (many) properties for sale.”
Of the 300 GTA neighborhoods that saw at least five home sales in June, 27 per cent saw transactions above bid, down from 36 per cent in May and 39 per cent in April, Wahi said. Seventy-one per cent were in the below-bid area, and the remaining 2 per cent sold for the asking price.
“A 25 basis point rate cut is not enough to bring more energy to a housing market facing rising home prices and an increase in availability,” said Benji Katchen, CEO of Wahi.
Katchen points out that there were 24,000 homes on the market last month, the most in several years. “Shoppers have more options than they have at any time in the last five years, so it's no surprise that bidding wars are calming down.”
Eight areas where apartment bidding is soaring
Bidding for single-family homes continued to be more active than condominiums, but the gap narrowed last month.
For single-family homes, 39% of listings were in overbid territory, down from 53% in May. For condominiums, 7% of listings (8 total) were in overbid territory, down from 11% in May.
Top 5 Highest Bidding Areas in the GTA in June
As in May, most of the top five overbid neighborhoods this time were located in York Region (Doncrest, Rouge Woods, Royal Orchard and Milliken Mills West), which were generally lower priced than the underbid neighborhoods.
Top 5 lowest bid areas in the GTA in June
Peel Region's Mineola and Hattonville were the two neighborhoods with the lowest bids last month, ranking high in June (while three of Oakville's more expensive neighborhoods made the top five in May).