Wondering where competition is ramping up in the GTA housing market? Here’s what you need to know.

The Greater Toronto Area (GTA) real estate market is showing early signs of increased activity in 2025, with some neighbourhoods experiencing a surge in bidding wars. If you’re a homebuyer, seller, or investor, understanding these trends can help you make informed decisions.

Where Is the Competition Heating Up?

According to a recent report from digital real estate platform Wahi, 22% of homes sold in January 2025 went for over the asking price. This is a notable jump from December 2024, where only 6% of neighbourhoods experienced overbidding. By January 2025, that number climbed to 11%, marking the highest overbidding activity since September 2024.

Key Highlights:

• Mississauga: New listings skyrocketed by 158.9% last month, fueling buyer interest.
• York Region & St. Clair West (Toronto): Emerging as overbidding hotspots.
• Condo Market: Despite bidding wars, buyers still find negotiating power due to high inventory levels.

What Does Overbidding Really Mean?

Overbidding doesn’t mean every home is selling above the asking price. Instead, it reflects a trend where multiple buyers are competing, sometimes driving prices higher. Factors like seasonal demand, strategic pricing by sellers, and local market dynamics play a role.

Interesting Fact: In January 2024, no GTA neighbourhoods were in overbidding territory. Fast forward a year, and the landscape has shifted dramatically.

Where Are Buyers Finding Bargains?

While competition is fierce in some areas, 83% of GTA neighbourhoods remain in underbidding territory. This means most homes are still selling below the asking price, giving savvy buyers room to negotiate.

• York and Halton Regions: Home to neighbourhoods with the largest underbids.
• Multi-Million Dollar Homes: Surprisingly, even luxury properties have seen significant price adjustments.

Expert Insight

“While bidding activity picked up to begin the New Year, nearly three-quarters of homes sold in the GTA this January were purchased below the listed price. Buyers still have opportunities to be selective and negotiate, especially in the condo market,” says Benjy Katchen, CEO of Wahi.

What This Means for You

• For Buyers: Act quickly in competitive areas, but don’t overlook opportunities to negotiate elsewhere.
• For Sellers: Pricing your home strategically can attract multiple offers, even in a shifting market.
• For Investors: Understanding where overbidding is happening can help identify high-demand areas for potential growth.

Stay Informed, Stay Ahead

The GTA real estate market is dynamic, and staying informed is key to making smart decisions.

Want more insights like this? Follow our blog for the latest real estate trends, or contact us for personalized advice. Let’s help you navigate the GTA market with confidence!