Home buyers can find deals when looking in this Oakville neighbourhood

If you’re looking for a deal when purchasing a new home, check out the neighbourhood of Old Oakville.

According to a report from digital real estate platform Wahi, the median sales price of a home listed in that neighbourhood was $2.237M in September, $145,000 under the median asking price.

“With the start of the historically busier fall real estate market, stronger competition is expected,” said Wahi CEO Benjy Katchen. “However, we’re still seeing transaction levels and bidding activity well below last year’s level for this time of year.”

Last September, 24 per cent of GTA neighbourhoods were in overbidding territory, with an additional three per cent selling at-asking. This year only 13 per cent of neighbourhood see median sales above asking price.

Wahi also tracks the percentage of homes that sell for less than they are listed for.

Overall, 69 per cent of homes of all types that sold in September were purchased for below-asking, down from 70 per cent the previous month.

That’s significantly higher than a year ago, when below-asking sales accounted for 61 per cent of all transactions.

There is a divergence by housing type, however. A lower share of single-family homes (64 per cent) were purchased for less than asking last month than condos (77 per cent).

The big change among Oakville neighbourhoods is that, after 15 straight months in the top five, the Eastlake was not among the GTA’s top five underbidding neighbourhoods in September.

Luxury markets with price points between $2 million and $4 million dominated in terms of underbidding last month.

Wahi’s report does point out that when a neighbourhood is in overbidding territory, it doesn’t necessarily mean that every home is selling above-asking. Instead, it’s a general reflection of overall market behaviour, which can be influenced by seasonal factors, for example, or decisions by sellers, such as to list homes below market value to try and attract more bids.

At the end of each month, Wahi compares the differences between median list and sold prices to determine whether neighbourhoods are in overbidding or underbidding territory, excluding those neighbourhoods with fewer than five transactions in a given month. A total of 284 neighbourhoods out of the GTA’s approximately 400 met this threshold in September, down from 272 in August.