Here’s How GTA Homebuyers Are Reacting Ahead of the 2026 Spring Housing Market

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.

By Josh Sherman | 4 minute read

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

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.

According to Wahi’s analysis, 7% of the 238 neighbourhoods in which at least five homes were sold last month were in overbidding territory this February, up from 6% of the 213 neighbourhoods that met the minimum sales threshold in January. Some 91% of neighbourhoods were in underbidding territory, and 2% were selling at asking.

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% of neighbourhoods were in overbidding territory.

“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% of all listings that sold last month changed hands for more than the list price, compared to 16% 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% of condos across the region sold for over asking last month, compared to nearly one-in-four (24%) 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. 

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 238 neighbourhoods out of the GTA’s approximately 400 met this threshold in January, up from 213 in January. 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.