Ontario Real Estate 2025: Homes Selling Below Asking as Bidding Wars Cool

If you’ve been watching the Ontario real estate market from the sidelines, now might be your moment. According to new data, more homes across the Greater Toronto Area are selling below list price, signaling a potential pause in the bidding war frenzy that has defined the past few years.

RPS-Wahi, a Canadian property valuation firm, reports that 65% of GTA homes sold for under asking in March 2025. That figure has remained steady since February and is up from 53% in March 2024. Buyers may finally be seeing some breathing room this spring.

A Market Shaped by Uncertainty

This slowdown isn’t happening in a vacuum. Economic concerns tied to Canada US border tensions, trade uncertainty, and possible job losses in key industries like automotive and steel are keeping many would-be buyers cautious. With fewer people entering the market, competition has eased in several regions.

Condos are feeling the brunt of it, with 75% selling below list price, compared to 58% of single-family homes. In Halton Region, just 3% of homes sold at asking, and 22% sold above. Some GTA properties have even been relisted for up to $400,000 below their original prices.

Should You Buy Now?

While the market remains uncertain, new federal mortgage rules and lower interest rates are creating better conditions for certain buyers:

Insured mortgage limits have increased to $1.5 million
First-time buyers can now access 30-year amortization options
Fixed mortgage rates have dropped below 4% in some cases

Benjy Katchen, CEO of RPS-Wahi, says buyers can now take their time and make more informed decisions.

“It’s better to buy without the pressure of 25 competing offers,” he said.

Will Bidding Wars Come Back?

Not entirely gone, says Katchen. In pockets like Old Toronto, bidding wars still occur, especially where home prices sit around $1.3 million. But in many areas, the frenzy has cooled, giving buyers more power than they’ve had in years.

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