Homes are selling way below asking prices all over Toronto and its suburbs

At the start of 2022, homes across the Greater Toronto Area were selling far over asking as competition remained fierce and borrowing costs stayed low.

Come March, though, the Bank of Canada began raising interest rates, and downward pressure started to weigh on home prices across the region. Nine months and seven rate hikes later, the overnight rate now sits at 4.25%; in January, it was 0.25%.

In a stark reversal from the spring, many homes are now selling under the listed price as buyers become increasingly hesitant to enter the market.

To understand how the GTA’s housing market has shifted over the course of the year, Zoocasa has analyzed listing and selling prices across the region.

Of the 31 cities the real estate agency analyzed, properties are selling under asking in 24 of them.

In the City of Toronto, homes are selling 2.53% below the average list price of $1,078,072. The average selling price of $1,050,788 represents an annual decline of 7.2%, Zoocasa noted.

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Across the GTA, the most expensive markets are seeing the biggest price gaps.

In Mississauga, homes are selling for 5.78% below the listed price of $1,085,072. Homes in Oakville are selling for 6.20% less than the average list price of $1,490,113.

Throughout the region, though, the biggest price gap was seen in Scugog. The average selling price of $818,700 is 10.04% below the average listing price of $910,04.

At just 0.02%, Whitby has the smallest price gap in the GTA.

Zoocasa

On the other hand, homes in Markham are selling 7.44% above the average asking price of $1,251,033. Ajax follows, with homes selling 4.98% above the average asking price of $902,591.

Despite some sizeable gaps, the majority of the markets Zoocasa analyzed remain in balanced territory. None of the 31 cities favour the seller, while just three — King, Innisfil, and Adjala-Tosorontio — are buyer’s markets.