Bidding wars back on the rise in Toronto despite prolonged market downturn

It’s been over a year of extraordinarily meagre activity in the Toronto area housing market, but despite the prolonged sales slump, a torrent of people looking to sell, and now a trade war with the U.S. that is set to worsen Canada’s economic recession, bidding wars are somehow on the rise.

While having to offer more than a home’s listing price was once the norm for would-be homeowners in the region, the market downturn that dominated last year has provided them with more options and negotiating power, leading to progressively more buyers landing houses and condos for less than their listed price.

By the end of 2024, properties in 93 per cent of GTA neighbourhoods were selling for less than sellers had hoped to get.

But, the tides have started to turn after multiple months of the underbidding trend.

According to Wahi, a local real estate agency that regularly examines such market patterns, there was a significant jump in people overbidding homes in February 2025, with the average home going for more than asking price in 20 per cent of the Toronto area when looking geographically (this amounts to 51 neighbourhoods in total.)

This is a rise from only 11 per cent of the region in January and 6 per cent in December.

“It may have been a chilly February for Greater Toronto Area home sales and prices overall, but there was some indication of more widespread bidding competition among homebuyers who dipped their toes in the market last month,” Wahi writes in its latest report on the subject.

It notes that last month marked the highest level of overbidding since June 2024. But, we are still very much in a buyer’s market, as indicated by the record number of homes up for sale while transaction volumes hit lows not seen in many years — since the ’90s for condos in particular.

Both the number of home sales and the average price of a home across the GTA fell yet again year-over-year in February — by 30 per cent and four per cent, respectively, according to Wahi’s data — which paints a differing picture of a still-struggling market.

The firm is also careful to point out that overbidding territory doesn’t equate to every home selling above asking price, nor homes necessarily going for more than they’re actually worth (although Toronto real estate is known to be among the most overvalued in the world, so our perspective on “worth” is skewed).

Infographic on overbidding and underbidding in GTA real estate in February from Wahi.

“It’s a general reflection of market behaviour, which can be influenced by seasonal factors or decisions by sellers, such as to list homes below market value to try and attract more bids,” the report reads.

Still, in the face of high interest rates and an ever-rising overall cost of living — plus the current political and economic environment — any increase in buyer enthusiasm and willingness to bid a property up is a change from what we have seen for a number of months in a row.

Here are the pockets of the GTA that were the hottest and the coolest, as far as bidding wars, last month. It must be noted that Wahi looks at overbidding and underbidding in dollar amount, rather than in proportion to price. Also, that the top overbidding amounts were higher than the top underbidding amounts.

Hottest, less likely to get a deal

1. Leslieville, Toronto — overbid by an average of $176,000 in February, with a median sold price of $1,218,000
2. Westbrook, Richmond Hill — overbid by an average of $162,000 in February, with a median sold price of $1,350,000
3. St. Clair West, Toronto — overbid by an average of $138,060 in February, with a median sold price of $1,355,500
4. Bridlewood, Scarborough — overbid by an average of $136,606 in February, with a median sold price of $1,050,000
5. West Shore, Pickering — overbid by an average of $95,051 in February, with a median sold price of $907,500

Coolest, most likely to get a deal

1. Eastlake, Oakville — underbid by an average of $111,500 in February, with a median sold price of $2,865,000
2. Mineola, Mississauga — underbid by an average of $98,400 in February, with a median sold price of $1,805,750
3. Southwest Oakville — underbid by an average of $79,900 in February, with a median sold price of $2,220,000
4. Hogg’s Hollow, North York — underbid by an average of $79,900 in February, with a median sold price of $2,042,500
5. Forest Hill, Toronto — underbid by an average of $69,000 in February, with a median sold price of $1,640,000