The average price of a home in the Toronto area may still be an outlandish $1,165,691 as of May, but record low sales activity and a flood of homes hitting (and sitting on) the market is lending would-be owners more options and less urgency in their search.

In contrast to the bidding wars of days past, more parts of the region are now seeing a trend of underbidding, with some sellers seemingly more desperate than buyers in this inflationary environment.

A new report from real estate listing site Wahi says that competition in the market continues to dwindle despite the latest interest rate cut, with only 27 per cent of neighbourhoods across the GTA in "overbidding" territory last month.

This is a decrease from 36 per cent the month prior, and 39 per cent in April.

On the flip side, underbidding is now the norm in a whopping 71 per cent of the 300 pockets that the firm assessed, with condos in particular most likely to go for under their asking price.

If looking only at that segment of the market, just seven per cent of neighbourhoods saw most units go for more than asking, again a decline from May, when this figure was 11 per cent.

The parts of the GTA where buyers underbid the most in June, per Wahi.

The community in which residents are underbidding on real estate the most is Mineola in Mississauga, where offers were $250,000 lower than asking prices, on average, in June.

Next on the list is Eastlake in Oakville, where this disparity was $230,000, followed by Huttonville in Brampton (where the typical buyer offered $199,900 less than asking), Toronto's Forest Hill ($148,000 less) and King City ($123,000 less).

It is worth noting that home prices in these places (with the exception of Brampton) are quite high, at well over $2 million, on average. Mineola, where people most underbid, had a median sold price of a staggering $2.7 million.

The most overbid neighbourhoods in the Toronto area, meanwhile, included Doncrest in Richmond Hill (where buyers, on average, paid $303,556 over asking), Rouge Woods in the same city ($240,000 over), Toronto's St. Clair West ($201,112 over). Royal Orchard in Markham ($191,200 over) and Markham's Milliken Mills West ($181,000 over).

The parts of the GTA where buyers offered the most above asking price in June, per Wahi.

"One 25-basis-point rate cut is not enough to jolt more life into a housing market that faces affordability challenges and a pile up of listing," Wahi's execs write. "Buyers who are shopping have more selection than they have at any time in the past five years, so it's no surprise that bidding competition is subdued."

That selection added up to an astounding 24,000 active listings during the month of June, which the study notes is "the most in several years" — yes, amid an alleged housing crisis that many are now realizing is really more of an affordability crisis.