Although the increase in competition among GTA homebuyers was marginal between January and February, properties in some east-end Toronto neighbourhoods are already sparking serious demand.
Bidding competition edged higher in the Greater Toronto Area for a second consecutive month this February, although real estate market conditions generally remained muted ahead of the spring homebuying season.
So suggests Wahi’s newest monthly Market Pulse report, which examines the differences between list and sold prices across the region.
Despite back-to-back upticks in the share of neighbourhoods in overbidding territory, the GTA housing market is underperforming last year by a wide margin (in terms of bidding competition). Compared to this February, triple the number of neighbourhoods (51) landed in overbidding during the same month last year. In February 2025, 20 per cent of neighbourhoods were in overbidding territory.
Expecting Increase In Bidding Competition
“We would expect to see some increase in bidding competition as we head towards the spring,” says Ryan McLaughlin, Wahi’s economist. “However, given how similar competition levels have been in the first two months of the year, all eyes will be on the March data,” he continues.
McLaughlin notes that there haven’t been any obvious catalysts for a stronger market rebound so far this year. For example, interest rates remain the same, economic uncertainty persists, and — although GTA home prices have come down from pandemic peaks — affordability is still a challenge.
However, conditions have not materially worsened either, McLaughlin notes. “You could say nothing changes if nothing changes, but, if conditions continue to remain stable, some homebuyers who have been standing on the sidelines could be encouraged to enter the market in the coming months,” he says.
While bidding competition at the neighbourhood level was relatively consistent between January and February, when looking at all listings regardless of location, there was a more noticeable rise in the share of homes selling for more than asking.
Some 21 per cent of all listings that sold last month changed hands for more than the list price, compared to 16 per cent in January. Drilling down into the numbers by housing type, buyers were more likely to drive up prices for single-family homes rather than condos.
Just 14 per cent of condos across the region sold for over asking last month, compared to nearly one-in-four (24 per cent) single-family homes. The share of single-family homes selling for more than asking is at the highest point since the beginning of last year’s fall market.
Toronto’s East End Sees Elevated Demand
Continuing a trend that emerged last year and only intensified in January, Toronto’s east end saw some of the strongest demand in an otherwise mostly quiet market. Three of the top five GTA neighbourhoods for overbidding in February were located on Toronto’s east side (The Beaches, The Danforth, and Leslieville). These neighbourhoods aren’t the city’s most affordable, but they tend to offer competitive pricing for areas that are fairly centrally located.
Note that a variety of factors can influence bidding trends, from seasonality to selling strategies. For instance, in some cases, REALTORS® may be more likely to price a home below market value in hopes of attracting multiple offers.
York Mills, last year’s most buyer-friendly neighbourhood, exited the top five for underbidding this February after beginning the year on top. It was replaced by Eastlake, the most underbid GTA neighbourhood of 2024.