The Greater Toronto Area’s real estate market is fiercely competitive, with low inventory driving up demand. Buyers need to be well-prepared and strategic to stand out in this challenging landscape.
At The Halyard Group, we’ve honed our offer strategies to help our clients secure their dream homes. This guide will walk you through the key components of a winning offer and show you how to position yourself for success in today’s market.
What’s Driving Toronto’s Real Estate Market?
Supply and Demand Imbalance
Toronto’s real estate market faces a persistent imbalance between supply and demand. Housing starts will slow down from 2025 to 2027 mainly due to fewer condominium apartments being built, but total starts will remain above their historical average. This shortage of available properties intensifies competition among buyers, often leading to multiple offer situations and properties selling above asking price.
Rising Property Values
Property values in the Greater Toronto Area (GTA) continue to fluctuate. The average selling price, at $1,107,463, shows a change in the market trend. The MLS® Home Price Index Composite benchmark was down by 5.4 per cent year-over-year in April 2025.
Evolving Buyer Preferences
The pandemic has reshaped buyer priorities, with a growing emphasis on space and functionality. Demand has surged for properties with home offices, outdoor areas, and larger living spaces. This shift contributes to increased competition for certain property types, especially in suburban areas that offer more square footage for the price.
Interest Rate Fluctuations
Interest rates play a crucial role in market dynamics. Interest rate cuts and mortgage rule changes could speed up the GTA housing market in 2025, according to experts. These changes are expected to affect affordability and demand in the market.
Preparing for Success
To succeed in this competitive environment, buyers must prepare thoroughly and stay informed. This preparation includes:
- Understanding your budget clearly
- Obtaining a mortgage pre-approval
- Connect with a knowledgeable real estate professional to help you navigate Toronto’s fast-moving market with confidence.
A skilled real estate agent provides insights into local market conditions and emerging opportunities. They analyze real-time data and leverage extensive networks to identify properties that match clients’ criteria, often before these properties hit the open market.
This proactive approach proves essential in a fast-moving market where desirable properties can receive multiple offers within days of listing. As we move forward, let’s explore the key components that make up a strong offer in this competitive landscape.
Crafting a Winning Offer in Toronto’s Competitive Market
Strategic Pricing
In Toronto’s hot real estate market, listing prices often serve as a starting point for bidding wars. Don’t fall for artificially low prices designed to attract multiple offers. Instead, work with your agent to analyze recent comparable sales in the area. This data-driven approach helps you determine a competitive yet realistic offer price.
In desirable neighbourhoods like Leslieville or High Park, home prices can vary significantly. While the median home price in Toronto was $950,000 in April 2025, individual neighbourhoods may have different price trends. If you’re serious about a property, prepare to offer a competitive price based on current market conditions and comparable sales.
Substantial Deposit and Solid Financing
A large deposit demonstrates your commitment to sellers. While 5% of the purchase price is standard, consider offering more if possible. Deposits as high as 10% can be particularly effective in multiple offer situations.
Pre-approval for mortgage financing is essential in this market. It not only strengthens your offer but also gives you a clear budget. Try to secure pre-approval for more than you plan to spend, giving you flexibility if you need to increase your offer.
Flexibility and Minimal Conditions
Sellers prefer clean offers with few conditions. While it’s tempting to waive all conditions to be competitive, this approach carries risks. Instead, consider shortening condition periods. For example, you might offer a 3-day financing condition instead of the standard 5 days.
Flexibility on closing dates can also set your offer apart. If possible, align your proposed closing date with the seller’s preferences. A buyer’s willingness to accommodate a seller’s timeline can win the deal, even against higher offers.
Personal Touch
In a market where multiple offers are common, a personal letter to the seller can make a difference. Share why you love the home and how you envision your family growing there. Keep it brief and sincere. While not all sellers are swayed by emotion, a heartfelt letter can tip the scales in a buyer’s favour.
The combination of these elements – strategic pricing, a substantial deposit, flexible terms, and a personal touch – creates an offer that stands out in Toronto’s competitive market. Every situation is unique, which is why working with experienced professionals (like those at The Halyard Group) can give you an edge. They tailor offer strategies to each specific property and seller, maximizing your chances of success.
As we move forward, let’s explore how partnering with a skilled real estate professional can further enhance your home-buying journey in this challenging market.
Why Partner with a Real Estate Pro?
Local Market Expertise
Real estate professionals possess intimate knowledge of the local market. They monitor price trends, inventory levels, and neighbourhood dynamics that aren’t readily available to the public. This insider knowledge allows them to identify opportunities and potential pitfalls that you might overlook.
A seasoned agent might know that homes in a particular Toronto neighbourhood typically sell for 5-10% above asking price. With this information, you can create a more competitive offer from the start, potentially outbidding other buyers who lack this insight.
Negotiation Skills
Negotiation is a skill that can make or break a deal in real estate. Professional agents negotiate property deals daily, giving them a significant advantage over the average buyer.
A study by the National Association of Realtors found that FSBOs (For Sale By Owner) typically sell for less than the selling price of other homes.
Access to Off-Market Properties
One of the most significant advantages of working with a real estate professional is access to off-market listings. These properties aren’t publicly listed but are available for sale.
Having an off-market listing allows sellers to keep the sale of their property private and more discreet than listing it on the MLS. In Toronto’s tight market, where inventory is low and competition is high, these off-market opportunities can be game-changers. They allow you to avoid bidding wars and potentially secure a property before it hits the open market.
Strategic Guidance
Real estate professionals provide strategic guidance throughout the home-buying process. They help you understand market conditions, set realistic expectations, and develop a winning strategy for securing your dream home.
For example, an experienced agent will have insights into the local market, understand seller motivations, and know how to position your offer to make it more attractive in a multiple offer situation. This type of strategic advice (based on years of experience and market knowledge) can give you a competitive edge.
Time and Stress Management
Navigating Toronto’s competitive real estate market can be time-consuming and stressful. A real estate professional takes on much of this burden, handling paperwork, coordinating viewings, and managing communications with sellers and their agents.
This support allows you to focus on the important decisions while your agent handles the day-to-day details of your home search. It’s like having a personal assistant dedicated to your real estate needs.
Final Thoughts
Toronto’s competitive real estate market demands strategic offer strategies, market knowledge, and quick decision-making. A successful offer combines competitive pricing, a substantial deposit, flexible terms, and a personal touch. Properties in desirable neighbourhoods often receive multiple offers within days of listing, so buyers must act swiftly and decisively.
Navigating this challenging market becomes easier with the support of experienced professionals. The Halyard Group specializes in helping families in the Greater Toronto Area upsize to larger homes. Our team’s deep market knowledge, negotiation skills, and access to off-market properties give our clients a distinct advantage.
The Halyard Group’s personalized approach ensures that your family’s unique needs and lifestyle remain at the forefront of the home-buying process. We provide comprehensive support every step of the way, from maximizing the selling price of your current home to finding a new property that meets your evolving needs. Our expertise in decluttering, staging, and marketing contributes to a seamless transition for your family.
