Image by : pixabay

In February, the Greater Toronto Area (GTA) experienced a significant shift in its real estate dynamics, with 25% of its neighborhoods entering overbidding territory, compared to none in the previous month. This marked a notable escalation from November of the preceding year when no neighborhoods were in overbidding territory. Despite the majority of neighborhoods being in underbidding territory earlier in the year, bidding wars were still prevalent, particularly for houses priced below $1 million. These properties garnered considerable attention, often selling for hundreds of thousands over asking price and attracting dozens of offers, even amidst an overall trend of underbidding.

The top overbidding neighborhoods in February were spread across the GTA, including areas in Ajax, Brampton, Markham, Pickering, and Toronto. Conversely, neighborhoods with higher home prices tended to be in underbidding territory, a pattern consistent with previous observations. While the condominium market saw an increase in overbidding activity, with 7.3% of neighborhoods entering this territory in February compared to none in January, it remained relatively less competitive than the non-condo segment.

The non-condo segment, comprising detached and semi-detached houses, row homes, and townhomes, witnessed a substantial surge in overbidding activity, with 88 neighborhoods entering this territory in February, up from none in January. This contrasted with the condo market, where only 10 neighborhoods experienced overbidding. The majority of these overbidding neighborhoods for condos were located within the City of Toronto. While both segments were displaying increased competitiveness, condos appeared to be a relatively less intense arena for bidding wars compared to non-condo properties.

Read the full article on: REAL ESTATE MAGAZINE