The Greater Toronto Area real estate market is in turmoil with a glut of homes on the market and houses across the region selling at shocking losses.

A new report from real estate listing site Wahi shows that the majority of neighbourhoods in and around Toronto are experiencing homes selling for below asking price, with underbidding on homes now the norm.

According to Wahi's newly released July 2024 Market Pulse Report, bidding for homes in the GTA cooled for the fourth consecutive month in July, with Wahi noting the slowdown even persisted through the Bank of Canada's second rate cut of the year.

The report examined 300 neighbourhoods where there were at least five home sales last month, finding that only 14 per cent of areas saw overbidding, roughly half of the 27 per cent rate of overbidding witnessed in June.

Only four per cent of these 300 neighbourhoods had homes selling at asking price, while the vast majority — at 82 per cent — were underbids.

"The spring selling season that never was has been followed by a slower-than-usual summer," says Wahi CEO Benjy Katchen.

Despite this slowdown in the market, Katchen noted that the glut of listings right now — over 10,000 more than were on the market one year earlier — "is helping more buyers negotiate better deals and purchase homes below-asking."

Summer is typically a slower season for home sales, though 2024's summer is proving slump-like when weighed year-over-year.

Just under 5,000 homes were sold across the region in July, representing a 12 per cent dip from the previous year. Similarly, the number of days homes sat on the market increased from 17 in July 2023 to 24 in July 2024.

Overbidding for homes is practically nonexistent in the current market at 4 per cent, the report noting such activity has dropped to its lowest level since January when 0 per cent of neighbourhoods were in overbidding territory.

It's a particularly stark contrast when weighed year-over-year, as July 2023 saw over one-third of Toronto neighbourhoods, at 38 per cent, in overbidding territory.