Meet the 5 GTA Neighbourhoods Where Home Prices Were Bid Way Above-Asking This Year

Affordability and listing strategies are some of the factors behind the stronger bidding activity on homes that Wahi has observed in a handful of Greater Toronto Area neighbourhoods in 2024, local experts say.

By Josh Sherman | 5 minute read

The most overbid neighbourhoods in the GTA over the past year are located in Old Toronto, Markham, and Richmond Hill, respectively.

Across the Greater Toronto Area, most homes are selling for less than listed, but in a handful of the region’s neighbourhoods buyers have been paying far more than the asking price this year.

Toronto’s Danforth, Richmond Hill’s Rouge Woods, and a trio of Markham communities, Milliken Mills West, Raymerville, and Victoria Square, have appeared on Wahi’s top five most overbid neighbourhoods ranking for three separate months this year, the most of any of the approximately 400 neighbourhoods the digital real estate platform tracks.

The monthly ranking is based on the differences between list and sold prices, and only includes neighbourhoods with at least five transactions. Neighbourhoods with the greatest spread between the list and sold prices, which is represented as the median overbid amount, and considered the top overbidding neighbourhoods in a given month.

Wahi caught up with local Realtors® to go behind the numbers and see what’s influencing the real estate markets in the top overbidding neighbourhoods. Experts provided a variety of reasons home prices are getting bid up in these GTA neighbourhoods, citing low-ball listings, the quality of homes, relative affordability to other parts of the region, and more.

The Danforth, Toronto

September was the third and final time to date this year that the Danforth was among Wahi’s monthly ranking of the most overbid neighbourhoods. At the time, homes sold for a median price of $1,110,000.

Location, location, location — that’s the primary driver of bidding competition in the Danforth, suggests Nadia Cawley, a Realtor at Right at Home Realty. “It’s really the convenience of the area,” she tells Wahi.

“It’s close to DVP, it’s close to downtown, the subway stations are usually within walking distance of the properties, and, not only that, there are tonnes of restaurants and cafes — it’s a really diverse neighbourhood,” she continues.

She says some buyers have been capitalizing on houses that are fixer-uppers, which can still be purchased for less than $1 million in the neighbourhood. After a proper renovation, these homes can sell for between $1.2 to $1.5 million, she estimates. “You’re able to reap the benefits of the investment that you put into the home.”

Of course, some overbidding is the function of properties that were listed too low to begin with. “It’s a strategy that most agents use to list low and then expecting multiple offers on an assigned presentation date,” Cawley explains. 

Milliken Mills West, Markham

Of the frequently overbid neighbourhoods in the GTA, Milliken Mills West is the most recent to appear in Wahi’s monthly top five. In November, the neighbourhood had a median sale price of $1,603,000 and a median overbid amount of just over $200,000. In June, the neighbourhood was overbid by 15%.

Deven Chen, a Realtor at Avion Realty Inc., says Milliken Mills West has fared better than many other neighbourhoods during the broader real estate downturn.

“From my point of view, it has to do with two things — one is location,” he explains. He says that the area, which borders northern Toronto, is loaded with nearby amenities, including Pacific Mall and many restaurants and shops. “It’s super convenient for a lot of people,” he says, noting it’s also well-connected with public transit.

The other thing Milliken Mills has going for it is the price point. Single-family homes are available in the $1 to $1.5 million range, which is still attainable for a number of households even amid higher borrowing costs. “In a slow real estate market you still have buyers… but these buyers generally come with  restricted budgets,” says Chen. Looking ahead, he expects these factors will help Milliken Mills continue to recover faster than many others.

Raymerville, Markham

Raymerville was one of Wahi’s top overbidding neighbourhoods for three months running, a streak that ended in October.

One local Realtor Wahi spoke to says bidding activity in Raymerville is largely influenced by listing strategies. “More often than not, the original price point is undervalued,” the Realtor says.

As Cawley noted, listing a home below market value is one way sellers can try to attract more bids. In these cases, a home may sell above asking, but the final price is more reflective of its actual value rather than a situation where buyers are overpaying amid strong demand.

The strategy is not unique to Raymerville or Markham in general, the local Realtor adds. “I’m seeing it everywhere,” he says. “If you look at Durham region, they’re very much like that.”

Wahi analysts also note that the median price of homes that have recently sold in Raymerville is on the higher end for the GTA. This can result in a larger dollar-amount difference between list and sold prices even if on a percentage basis, Raymerville is no more overbid than lower-priced neighbourhoods. Percentages aren’t used in the ranking because there would be too many ties, Wahi analysts note.

Current demand in Raymerville is for turnkey properties, especially those with finished basements, the Realtor says. With the number of listings on the market elevated, buyers are pickier, and higher mortgage rates have some looking for help with the carrying costs, something a basement rental can provide. “Carrying costs are everything right now,” he says.

Raymerville has several qualities that continue to attract homebuyers, he adds. “It’s an area with a good history, good schools, safety, [and a sense of] community.”

Rouge Woods, Richmond Hill

As recently as August, Rouge Woods was a leading GTA neighbourhood for overbidding, when the median sale price was $1,606,944 and the median overbid amount reached a jaw-dropping $123,000.

“It’s because it’s cheaper than Toronto,” Gregory Stavropoulos, a Realtor with Century 21 New Concept Brokerage, of demand for real estate in Rouge Woods.

“Affordability is the key throughout the GTA,” says Stavropoulos, a long-time resident of the neighbourhood. “What’s moving is the townhomes because of the price,” he notes. 

Rouge Woods in particular is a stone’s throw from Ontario Highway 404, making it a convenient place for commuters to the city to put down roots. It’s also near top-rated schools, Stavropoulos adds. A Realtor of 40 years, Stavropoulos also suspects agents are listing homes in Rouge Woods at unrealistically low prices to try and drum up more bids: “Certain homes, they underprice.”

In the broader context, the market has been sluggish since interest rates began climbing in 2022, he says, and there certainly aren’t the bidding wars witnessed during the previous peak. Nevertheless, he’s beginning to see positive signs of a turnaround. “The higher-end homes in Rouge Woods… are starting to move,” he tells Wahi. “Buyers are slowly starting to trickle back but we’ve got a long road to recovery.”

Victoria Square, Markham

Bidding activity peaked in Victoria Square this February, when the median overbid amount reached $255,100, the third-highest amount recorded in any neighbourhood this year. Percentage-wise, the overbid amount translated to a whopping 20% difference between sold and list prices. 

Victoria Square also cracked the top five in March and May, respectively. Although it has been absent from the ranking since, Valerie Guo, sales person with Superstars Realty, says she’s seeing more signs of activity of late. “The market is getting a little bit better than two or three months ago,” she tells Wahi.

She says the quality of homes in Victoria Square has led to stiffer bidding competition in the neighbourhood compared to many other places. “Buyers are kind of picky,” she says.

A high number of listings on the market in the Greater Toronto Area has given buyers a lot of choice in general, putting pressure on sellers. But that’s less of an issue in Victoria Square, which has a high concentration of new builds — which happens to be what many of today’s buyers are looking for, she suggests.

“They want the property to be fully renovated… and they don’t need to put money to renew them,” she explains. “That’s why the new properties are more attractive.”