Want to Avoid a Bidding War? Try These Toronto Neighbourhoods

Home prices are getting bid up in the vast majority of the Greater Toronto Area’s neighbourhoods now — but digital real estate platform Wahi highlights a handful of affordably priced communities where properties still sell below asking.

By Josh Sherman | 3 minute read

Bidding over the asking price on available homes on the resale market is becoming more common in an increasing number of neighbourhoods across the GTA.

Competition among homebuyers is getting even tighter across the Greater Toronto Area during the spring real estate season as more neighbourhoods are entering overbidding territory, according to Wahi.

In May, 68% of GTA neighbourhoods landed in overbidding territory, new Wahi analysis found.  That’s up from 57% in April and part of a longer-term trend that has been playing out for much of the year. Since February, the share of neighbourhoods in overbidding territory has been skyrocketing. To identify overbidding and underbidding neighbourhoods each month, Wahi compares the differences between list and sold prices for all types of homes, including condo units and houses.

Neighbourhoods with fewer than five transactions in a given month are excluded. Based on this criteria, 222 of 326 neighbourhoods were in overbidding territory last month. “Sellers who price their homes below true value are, for the most part, selling their homes quickly — and at or above the list price,” says Wahi CEO Benjy Katchen. 

The GTA’s Most Affordable Underbidding Neighbourhoods  

Despite the widespread presence of overbidding, a number of more affordably priced neighbourhoods fell within underbidding territory last month, including five where the median price was below $700,000:

1. York University Heights, North York
Median sold price: $630,000
Median underbid amount: -$4,000

Just East of Jane and Finch community, York University Heights is bounded by Steeles Avenue West to the north, Dufferin Street to the east, Sheppard Avenue West to the south, and Derrydowns and Northwood Parks to the west. The neighbourhood — named for the 460-acre post-secondary campus in its northwestern section — is well connected to the rest of the city thanks to the recent completion of the York University subway station.

2. Yorkdale, North York
Median sold price: $646,000
Median underbid amount: -$4,500

Located at the southwest corner of the Allen Road and Ontario Highway 401, this neighbourhood is packed with amenities. Yorkdale Shopping Centre, once the world’s biggest indoor mall, has upwards of 250 stores. Many luxury brands have set up shop in the mall, but you don’t need a high-end budget to call the surrounding neighbourhood home. A wave of proposed and ongoing condo development along Dufferin Street is adding to the local housing inventory. 

3. Erin Mills, Mississauga
Median sold price: $660,000
Median underbid amount: -$14,000

Erin Mills sits on the western border of Mississauga, next to Oakville. Like Yorkdale, the neighbourhood is anchored by a large mall. Erin Mills Town Centre boasts more than 200 shops and is the neighbourhood’s hub for amenities. Also similar to Yorkdale, condo developments have been breaking ground around the mall in contrast to the established — and more expensive — suburban low-rise communities. 

4. Concord, Vaughan
Median sold price: $670,000
Median underbid amount: -$9,000

Just north of York University Heights and Black Creek, Concord Ontario is a suburban industrial district known for its relative affordability, especially compared to pricier pockets of Vaughan (such as Crestwood-Springfarm-Yorkhill). The arrival of the Line 1 Yonge–University subway extension, in 2017, has spurred more high-rise development in and around the community, boosting housing options for everyone from first-time buyers to empty nesters who are downsizing. 

5. Smithfield-Clairville, Etobicoke

Median sold price: $695,500

Median underbid amount: -$4,900

By Humber College’s northern campus, Smithfield-Clairville has a mix of homes from student housing and single-family properties to older condos and more contemporary projects, including new builds. The Humber River, which weaves to the west of the neighbourhood, offers a green backdrop and lots of outdoor space to explore.

Beyond the top five, the underbid neighbourhoods with the lowest prices generally tended to have a higher concentration of condo units, which weighs down the median home price:

6. Corktown, Old Toronto
Median sold price: $700,000

Median underbid amount: -$9,000

7. St. Lawrence, Old Toronto

Median sold price: $710,000

Median underbid amount: -$9,900

8. Fort York, Old Toronto

Median sold price: $715,000

Median underbid amount: -$11,500

 9. Thornhill, Markham
Median sold price: $718,500

Median underbid amount: -$4,000

10. Liberty Village, Old Toronto

Median sold price: $721,250

Median underbid amount: -$3,400

Markham Ranks Highest for Overbidding Neighbourhoods in the GTA

Once again, Markham dominated the list of most-overbid neighbourhoods, capturing four of the top five slots, with Seaton Village, in Toronto, the lone outlier. Neighbourhoods are ranked according to calculations based on percentage changes between list and sale prices.

Factors such as low inventory levels relative to recent years, plus sellers listing homes below market value to attract multiple offers, have contributed to the overbidding witnessed across Markham this year.  

High-End Neighbourhoods Lead Underbidding Charge 

With an additional 7% of neighbourhoods selling at asking — meaning there wasn’t a significant difference between median selling and list prices in those areas — only 25% of the neighbourhoods analyzed were in underbidding territory. As has been the case in previous months, the top neighbourhoods for underbidding tended to be in wealthier communities, typically known for larger detached homes: