Canada Housing Market

Homebuyers across the Greater Toronto Area may be gaining more negotiating power as new data shows a sharp slowdown in competition.

A recent report from Wahi found that nearly 75% of GTA neighbourhoods saw homes sell below asking price in March, signaling one of the weakest housing markets in years.

Buyer Competition Hits 4-Year Low

Wahi analyzed 213 neighbourhoods across the GTA and found that:

• Only 6% of neighbourhoods were in overbidding territory
• 92% were in underbidding territory
• Just 2% of homes sold at asking price

According to the report, this marks the lowest level of homebuyer competition in at least four years, dating back to when Wahi began tracking this data in mid-2022.

Majority of Homes Selling Below Asking

The trend is also reflected in overall sales data:

• 74% of homes sold below asking price
• Only 23% sold above asking
• Down from 31% above asking in March 2025

This suggests a major shift from the highly competitive pandemic-era market, where bidding wars were the norm.

What’s Causing the Slowdown?

Economists point to a mix of economic and seasonal factors behind the cooling market.

Ryan McLaughlin noted that renewed geopolitical uncertainty, combined with colder-than-usual weather and ongoing affordability challenges, is dampening buyer activity.

While affordability has improved slightly, it remains a barrier for many, contributing to subdued demand.

Detached Homes Outperform Condos

The report also highlights a growing divide between housing types.

• Around 14% of neighbourhoods with detached home sales saw overbidding
• Compared to just 1% of condo-heavy neighbourhoods

This suggests buyers are still prioritizing low-rise housing, while demand for condos continues to weaken.

Where Bidding Wars Still Exist

Despite the broader slowdown, some pockets of competition remain.

Top overbidding neighbourhoods in March included:

• Runnymede (Toronto)
• Bloor West Village (Toronto)
• Riverdale (Toronto)
• Rouge Woods (Richmond Hill)
• Trinity Bellwoods (Toronto)

In Runnymede, buyers paid nearly $200,000 over asking on average.

Luxury Neighbourhoods See the Biggest Discounts

At the same time, some of Toronto’s most expensive areas are seeing significant price gaps below asking.

Top underbidding neighbourhoods included:

• Rosedale (Toronto) – approx. $177K below asking
• Mineola (Mississauga) – approx. $143K below asking
• Forest Hill (Toronto) – approx. $142K below asking
• King Township – approx. $140K below asking
• Summerhill (Toronto) – approx. $138K below asking

This trend suggests higher-priced markets may be experiencing the most resistance from buyers.

What This Signals for the GTA Housing Market

The latest data points to a clear shift in market dynamics across the GTA.

With fewer bidding wars, more price negotiations, and declining competition, conditions are increasingly tilting in favour of buyers – at least for now.

However, affordability challenges and broader economic uncertainty continue to limit how much demand can rebound, even as prices soften.

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References

Arsenych, A. (2026, April 6). Nearly 75 per cent of GTA neighbourhoods saw homes sell below asking in March, report finds.

Toronto real estate market: nearly 75% saw homes sell below asking in March

Wahi. The Greater Toronto Area’s Housing Market Stalls

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