Greater Toronto Area Real Estate Hasn’t Been This Buyer-Friendly in Years

December wrapped up the best buyer’s market in years for Greater Toronto Area real estate with bidding competition remaining at an all-time low.

By Josh Sherman | 4 minute read

At the end of each month, Wahi compares the differences between median list and sold prices to determine whether neighbourhoods are in overbidding or underbidding territory.

December capped off a banner year for buyer-friendly conditions in the Greater Toronto Area housing market, with 98% of neighbourhoods with at least five home sales seeing prices bid below asking.

The remaining 2% — 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.

December’s share of neighbourhoods in underbidding territory is roughly unchanged from November, when 97% of neighbourhoods were underbid. It also matches a previous monthly high for underbidding that was most recently reached this past October.

“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% 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.

When looking at all home sales regardless of neighbourhood in December, there was a noticeable increase in homes selling for less than asking. Last month, 82% of homes that changed hands did so for below the list price, compared to 78% in November. This is the highest share of total listings selling for below asking in more than a year.

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.

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.

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.

Methodology: How Wahi Ranks Overbidding and Underbidding Neighbourhoods

At the end of each month, Wahi compares the differences between median list and sold prices to determine whether neighbourhoods are in overbidding or underbidding territory, excluding those neighbourhoods with fewer than five transactions in a given month. A total of 240 neighbourhoods out of the GTA’s approximately 400 met this threshold in December, down from 280 in November. Data is sourced from Information Technology Systems Ontario (ITSO) and the Toronto Regional Real Estate Board (TRREB).

The top overbidding and underbidding neighbourhoods are ranked by the median overbid or underbid amount. The median overbid and underbid amounts are calculated by subtracting the list price from the sold price of each individual listing in a given neighbourhood. These are then ranked by the median of all subtractions and presented as the median overbid or underbid amount. For the latest data on overbidding and underbidding at any point in the month, Wahi’s Market Pulse tool provides readings based on the past 30 days of transactions.