Neighbourhoods in and around Toronto where people are most likely to overbid on houses

The real estate market in much of the Toronto area may have softened over the course of the last 12 months, but there were still some pockets where bidding wars persisted, regardless of activity generally trending downwards.

Contrary to the best spots in the region for getting a deal on a home compared to asking prices — which included Eastlake in Oakville, Lakeview in Mississauga and Huttonville in Brampton — the communities that were the most overbid saw residences go for up to 24 per cent more than what they were listed for, on average.

The hottest was by far the Danforth in Toronto, where homes were not only the most overbid of anywhere in the GTA in a single month (by the aforementioned 24 per cent in April), but where properties were most consistently overbid this year.

According to Wahi, a real estate listing site that summarizes how far over or under list prices that homes in various locations are selling for each month, the Danforth was in the top five for most overbid neighbourhoods three out of 11 months assessed, and was also the second-most searched by would-be homebuyers over all months.

Chart of the most overbid spots in the GTA this year, according to Wahi.

In a close second were Rouge Woods in Richmond Hill, and Raymerville, Victoria Square and Milliken Mills West in Markham, all of which were also within Wahi’s top 5 overbid areas three times this year.

The firm writes that “at the neighbourhood level, there wasn’t a runaway leader for overbidding this year,” but puts Danforth at the top due to two above factors that indicated above-average demand for real estate.

The main factors? The convenient location next to transit, highways and downtown, along with all sorts of restaurants, shops and other amenities.

There are also a lot of renovation-ready homes at relatively reasonable prices along the strip, allowing people to create their dream home exactly how they want it, or “reap the benefits of any investment that you put into the home,” as one local realtor told the firm for its year-end wrap-up.

In regards to bidding wars, though, Wahi notes that “listing a home below market value is one way sellers can try to attract more bids. In these cases, a home may sell above asking, but the final price is more reflective of its actual value rather than a situation where buyers are overpaying amid strong demand.”