GTA Home Sales Decline Below Asking Price Across Most Neighbourhoods

Almost all neighborhoods in the Greater Toronto Area (GTA) experienced homes selling for less than their asking price last month. According to a report published by Wahi, a real estate analysis firm, 98 percent of the GTA neighborhoods with at least five sales in August fell into this “underbidding territory.” This marks a significant increase from 95 percent in July and 89 percent a year ago.

The report’s author, Josh Sherman, noted that homebuyers have been gaining leverage in the GTA for several months. He indicated that the recent data reflects a high point in underbidding activity, matching a three-year peak. The report highlights a shift in market dynamics, with buyers now holding more cards in negotiations.

Condominium Market and Broader Trends

The cooling trend is not limited to single-family homes. A report from Urbanation, released on July 15, revealed that condominium sales had plummeted by 69 percent in the second quarter of this year. Wahi’s findings indicate that 97 percent of the 102 neighborhoods with at least five condo sales in August were also marked by underbidding.

While the downturn in the condo market is notable, Ryan McLaughlin, an economist at Wahi, emphasized that the trend extends beyond just condominiums. He pointed out that increased underbidding is also evident in the single-family home segment. The Royal Bank of Canada (RBC) previously reported that “supply-demand conditions have shifted in the buyer’s favour” in Ontario this year.

Despite the typical seasonal slowdown in home sales during the summer months, McLaughlin insists there are factors beyond vacationing homebuyers contributing to the underbidding trend. Among neighborhoods that saw at least five single-family home sales last month, 94 percent experienced homes selling below their asking price.

Market Insights and Implications

In August 2025, only 2 percent of homes in the GTA sold at their asking price, while 19 percent sold above and 79 percent below. The neighborhoods most affected by underbidding included Oakville, North York, Vaughan, and Old Toronto, where median underbidding ranged from $158,000 to just over $200,000.

This decline in home sales relative to asking prices may reflect broader economic conditions and changing buyer sentiment in the GTA. The data suggests that the market is becoming increasingly competitive for homebuyers, who may be capitalizing on favorable conditions to negotiate lower prices.

As the real estate landscape continues to evolve, stakeholders will need to stay informed about these trends, which could have lasting implications for buyers, sellers, and the overall market stability in the Greater Toronto Area.