Last month, the Greater Toronto Area (GTA)’s housing market witnessed a surge in overbidding, continuing the trend set in February, according to Wahi’s latest Market Pulse Report. Yet, as recently as January, no GTA neighbourhoods were experiencing overbidding conditions.

43% of GTA neighbourhoods in overbidding territory

Compared to 25 per cent in February and 35 per cent from a year ago, 43 per cent of GTA neighbourhoods were in overbidding territory in March. Additionally, 6 per cent were selling at-asking, while 51 per cent were underbid, marking a significant decrease from 69 per cent over the same period.

“We’re beginning to see more homebuyers step off the sidelines, resulting in more bidding competition in a growing number of neighbourhoods,” says Wahi CEO Benjy Katchen.

However, he highlights that despite this trend, more than half of the neighbourhoods still experience underbidding, particularly in the condominium market.

Competition heats up

Competition among buyers intensified, especially in the non-condominium segment, with approximately 61 per cent of neighbourhoods in overbidding territory for non-condominium homes in March, compared to 39 per cent in February.

Conversely, the condominium market saw less overbidding activity, with only 14 per cent of neighbourhoods in overbidding territory in March and 82 per cent underbid.

Katchen attributes this to pricing pressure from new-build condominiums entering the resale market. “As higher interest rates have taken their toll, many units purchased two to three years ago are now hitting the market at discounts from the original purchase prices.”

Top overbidding and underbidding neighbourhoods

The top five overbidding neighbourhoods were all located within the Regional Municipality of York.

On the flip side, the top underbidding neighbourhoods were spread across Toronto, York and Halton regions, suggesting renewed activity across the price spectrum.

Get full details here.