GTA Housing Market Concludes 2025 as Most Buyer-Friendly in Years
The Greater Toronto Area real estate market finished 2025 with highly favourable conditions for homebuyers, marking a dramatic shift from the competitive landscape of recent years. According to analysis by digital real estate platform Wahi, nearly all neighbourhoods in the GTA saw homes sell below asking price in December, a trend that held consistently throughout the entire year.
Widespread Underbidding Across the Region
In December 2025, an overwhelming 98 per cent of GTA neighbourhoods with at least five home sales recorded median sale prices below the list price, indicating broad underbidding across the region. Only four of 240 neighbourhoods saw homes sell above asking, underscoring just how much leverage buyers continue to have in the current market environment.
December's results mark another month in a long stretch where sellers struggled to command premiums. While economic uncertainty in 2025 kept many prospective buyers cautious, those who remained in the market often secured homes for less than the asking price. At no point in 2025 did the GTA housing market favour sellers overall.
Historical Market Shift
The trend reflects a dramatic shift from recent years, particularly compared to 2023 and 2024. In May 2023, nearly two-thirds of GTA neighbourhoods experienced bidding wars with prices pushed above asking. Even in 2024, the best month for sellers (March) saw roughly half of neighbourhoods in overbidding territory.
March 2025 was the best month for sellers, but even then sellers were being underbid in 73 per cent of neighbourhoods. This represents a significant departure from previous years when multiple offers and above-asking sales were commonplace.
Neighbourhood Variations and Pricing Dynamics
Although underbidding dominated the region, a handful of pockets bucked the broader trend. Four neighbourhoods remained in overbidding territory in December, notably Bridlewood and Wexford in central Scarborough. In these areas, buyers still competed for homes, with median overbid amounts of roughly $35,550 and $18,000, respectively.
Interestingly, these competitive pockets tended to feature lower list prices, suggesting that affordability thresholds continue to influence bidding behaviour. Conversely, the greatest underbidding occurred in some of the GTA's most expensive neighbourhoods.
Established enclaves such as Forest Hill, York Mills and the Annex saw homes frequently sell well below asking price, with median sale prices between $1.2 million and $2.5 million and median underbid amounts ranging from $124,000 to $229,000. These areas, known for larger, luxury homes, typically carry higher price tags and may have been more impacted by buyers tightening their budgets in response to elevated borrowing costs.
Market Implications for Buyers and Sellers
For buyers, 2025 offered more negotiating power in a market once dominated by multiple offers and above-asking sales. The fact that more than eight in 10 homes sold below list price in December — the highest share in over a year — highlights how soft conditions have become.
Sellers, on the other hand, face a more challenging environment in which pricing strategy and patience are key. As Wahi's analysis shows, the gap between list and median sale prices plays an important role in understanding local market dynamics.
The Greater Toronto Area housing market's transformation throughout 2025 represents a significant recalibration from the frenzied conditions of previous years. With buyers gaining substantial leverage and sellers needing to adjust expectations, the market has entered a new phase characterized by more balanced negotiations and realistic pricing.
