While the Greater Toronto Area housing market remains the most buyer-friendly in years, a small number of neighbourhoods are showing early signs of renewed competition.
Just 6 per cent of GTA neighbourhoods with at least five home sales in January were in overbidding territory, up from 2 per cent in December, according to new data from digital real estate platform Wahi.
In January of 2025, 11 per cent of 236 neighbourhoods with five home sales landed in overbidding territory. Despite the uptick, 93 per cent of GTA neighbourhoods saw homes sell below asking, underscoring that cooler market conditions still dominate, the report said.
$100,000 Above To $250,000 Below
It said the strongest bidding activity was concentrated in Toronto’s east end, with The Beaches, Leslieville, and East York ranking as the most overbid neighbourhoods last month. These neighbourhoods saw homes sell for between $14,500 and $101,000 above list prices. Meanwhile, traditionally high-priced areas such as York Mills and Eastlake remained among the most buyer-friendly neighbourhoods in the region, with homes selling for between $92,450 and $250,000 below list prices.
Real Test
“The increase in the number of neighbourhoods in overbidding territory only amounted to a handful of communities,” notes Ryan McLaughlin, Wahi’s economist. “We’re really talking about a dozen neighbourhoods being overbid in January, compared to four in December, so cooler market conditions are definitely still prevailing.”
The real test, McLaughlin suggests, will be the spring market, which sometimes kicks off as early as February. “Another month or two of sales data should give us a better idea of the market’s trajectory this year,” he adds.
So far, it’s been the slowest start for the GTA housing market in decades. Some 2,751 homes changed hands throughout the region last month, down from 3,752 in January 2025.
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