68% of Homes Sold Below Asking in the GTA – What It Means for Buyers & Sellers This Spring

68% of Homes in the GTA Sold Below Asking in May — Are We in a Buyer’s Market?

Spring is traditionally the hottest time of year in real estate — but this year, the Greater Toronto Area (GTA) market is taking a very different turn.

According to a new report by digital real estate platform Wahi, 68% of homes sold in May 2025 went for less than their listing price. That’s up from 67% in April — and the trend is becoming harder to ignore.

Underbidding Is Spreading Across the GTA

Wahi’s report revealed that 87% of GTA neighbourhoods were in underbidding territory last month — meaning the average sale price was lower than the asking price. In comparison, only 13% of neighbourhoods saw homes sell above list price.

Just a year ago, only 60% of neighbourhoods were underbid, while 36% were overbid. This clear shift shows a cooling market, driven by buyer caution, increased inventory, and sellers adjusting to new market realities.

Key Stats from May 2025:

• 68% of all homes sold went below asking
   

• 78% of condos sold under list price (unchanged from April)
   

• 64% of single-family homes sold under asking (up from 61% in April)
   

• 6,244 total sales across the GTA (down 13.3% year-over-year)
   

• 21,819 new listings hit the market (up 14% YoY)
   

• 41 days on market in Mississauga (up from 36 days in April)
   

Where Is Underbidding Happening Most?

Underbidding is no longer limited to a few quiet pockets. It’s happening across the GTA, including Toronto, York Region, and Halton Region.

Some of the most notable underbidding neighbourhoods include:

• Lawrence Park
   

• York Mills
   

• Eastlake (Oakville)
   

Eastlake, in particular, has shown consistent underbidding activity — likely due to the difficulty in pricing newer custom-built homes in the area. While these properties are luxurious, they don’t always align with today’s more cautious buyer budgets.

Where Bidding Wars Still Exist

Interestingly, bidding wars haven’t disappeared entirely. In fact, most of the top overbidding neighbourhoods were still located within the City of Toronto.

Since March 2025, the 416 area has consistently dominated Wahi’s list of overbid areas. This trend reflects the continuing demand for urban lifestyle, limited inventory, and proximity to transit, jobs, and culture.

Condos vs. Single-Family Homes: What's Holding Up?

While both segments are seeing price pressure, condos are facing more dramatic underbidding.

• 98% of GTA neighbourhoods saw underbid condo sales
   

• Just 2% of areas sold condos at or above asking
   

• In contrast, 79% of single-family home neighbourhoods were underbid, up from 76% in April and 44% a year ago
   

Condos, especially in suburban or less transit-friendly areas, are seeing stagnant demand. On the flip side, single-family homes are still desirable — but buyers are negotiating more aggressively.

What Experts Are Saying

“Many homebuyers are negotiating lower prices in the GTA today, but that doesn’t necessarily mean properties are selling for below market value,”
— Benjy Katchen, CEO of Wahi

This distinction is crucial. Homes selling under asking doesn't mean they’re undervalued — it may simply mean sellers are still pricing based on past market highs, not current buyer behavior.

What Does This Mean for You?

If You’re a Buyer:

• You have negotiating power — more listings, fewer bidding wars, and longer days on market

• Condos offer deep discounts right now

• Single-family homes are softening, making it a good time to enter that market segment

If You’re a Seller:

• Don’t overprice your home — buyers are too savvy in today’s climate

• Be prepared to negotiate and stage strategically

• If you're in a high-demand neighbourhood in Toronto, you may still get top dollar

Final Thoughts: A Market in Transition

The GTA housing market is clearly shifting from a seller’s market to a more balanced or even buyer-friendly environment in many areas. With increased inventory, longer selling times, and fewer bidding wars, it’s crucial to price, market, and negotiate wisely.

Whether you're buying or selling in this evolving market, staying informed is key — and working with a local expert can make all the difference.

Ready to Navigate the Market With Confidence?

If you’re thinking about buying or selling in Mississauga, Toronto, or anywhere in the GTA, I’m here to help. With the right strategy, you can make smart real estate decisions — even in a shifting market.

Let’s connect at 416-858-9006 and start your journey with confidence.