The Greater Toronto Area’s housing market continued to slide further into underbidding territory last month, with 68% of all homes sold in May going for less than the asking price, according to a new report from digital real estate platform Wahi.
Despite spring traditionally being a high season for real estate, buyers in the GTA are increasingly negotiating prices down, a sign that sellers may still be adjusting to the realities of a cooling market. The share of neighbourhoods with underbid sales rose to 87%, up from 84% in April — a sharp contrast to just 60% underbidding a year ago.
“Many homebuyers are negotiating lower prices in the GTA today, but that doesn’t necessarily mean properties are selling for below market value,” said Benjy Katchen, CEO of Wahi. “Some sellers have been slow to adjust their expectations from when the market was booming and continue to list too high.”
Single-family homes, once more resilient, are now showing signs of softening. In May, 64% of detached homes sold below asking, up from 61% in April. Condos continued to struggle, with 78% selling under list price, the same rate as the previous month.
Even as inventory rose, with 21,819 new listings reported by the Toronto Regional Real Estate Board (TRREB) — a 14% increase year-over-year — home sales were down 13.3% compared to May 2024, totaling 6,244 transactions.
Homes are also taking longer to move. In Mississauga, for instance, the average number of days on market rose from 36 days in April to 41 days in May, highlighting increased buyer caution and slower deal closures.
Among the neighbourhoods most affected by underbidding were Lawrence Park, York Mills, and Eastlake — the latter consistently appearing in Wahi’s underbid rankings, likely due to high-end custom homes that are harder to price accurately.
Meanwhile, the few neighbourhoods where bidding wars are still occurring remain concentrated in the City of Toronto. Since March, the top overbid neighbourhoods have largely stayed within the 416 area code, signaling a geographic shift in demand dynamics.
Overall, while condos continue to see widespread underbidding (98% of neighbourhoods), the single-family segment — though more stable — is clearly softening. In May, 79% of neighbourhoods saw underbids on single-family homes, up from 76% in April and 44% a year ago.
The latest figures underscore a broader trend: the GTA housing market is in a clear correction phase, where buyers are holding more power — and sellers are being forced to realign their expectations.
