December capped off a banner year for buyer-friendly conditions in the Greater Toronto Area (GTA) housing market, with 98 per cent of neighbourhoods with at least five home sales seeing prices bid below asking.
The remaining 2 per cent; which accounted for four of the 240 total neighbourhoods with five transactions were in overbidding territory.
That’s according to the latest monthly Market Pulse report from Canadian digital real estate platform and brokerage, Wahi.
December’s share of neighbourhoods in underbidding territory is roughly unchanged from November, when 97 per cent of neighbourhoods were underbid. It also matches a previous monthly high for underbidding that was most recently reached this past October.
Economic Uncertainty
“Throughout 2025, homebuyers have had the upper hand, and December was certainly no exception,” says Wahi Economist Ryan McLaughlin. “While economic uncertainty has kept some would-be buyers sidelined, many of those that have moved forward with plans to purchase have been able to negotiate lower prices,” he continues.
At no point in 2025 did the GTA market favour sellers overall. In fact, the best market for sellers in terms of bidding competition was March but, even then, prices were bid down in 73 per cent of neighbourhoods.
Overall, 2025 was considerably more buyer-friendly than the two preceding years. The best month for sellers in 2024 (March) saw home prices bid up in roughly half of all neighbourhoods. Meanwhile, in May of 2023, nearly two-thirds of neighbourhoods were in overbidding territory, the peak for the year.
Four GTA Locations in Overbid Territory
Just four GTA neighbourhoods were in overbidding territory in December, and a pair of Scarborough neighbourhoods in particular stood out in an otherwise cool market. Bridlewood and Wexford, two neighbouring communities in central Scarborough, experienced more pronounced overbidding activity compared to other neighbourhoods. Bridlewood and Wexford had median overbid amounts of $35,550 and $18,000, respectively.
These locales represent a shift from November, when the lion’s share of top overbidding neighbourhoods were found in the heart of Toronto.
As is typically the case, the neighbourhoods deepest in overbidding territory had significantly lower list and sale prices than those leading the way for underbidding.
Top Underbidding Neighbourhoods
The top underbidding neighbourhoods were concentrated in the City of Toronto in December. They were mostly located in established communities known for higher-end homes, such as Forest Hill, York Mills, and the Annex.
The median sales prices in a majority of these neighbourhoods were near or in excess of the $2-million mark, whereas only one of the top overbidding neighbourhoods had a median sale price over $1 million.
None of the top underbidding neighbourhoods were carryovers from November.