In short
Buyers often shorten or waive conditions to compete, and offer dates and bully offers become common.
Sellers have the leverage, but pricing still matters.
How a seller's market is measured
In Canada the usual gauge is the sales-to-new-listings ratio (SNLR): homes sold in a month divided by new listings that month.
CREA considers 40% to 60% balanced. A ratio above about 60% generally signals a seller's market, because homes are selling nearly as fast as they are being listed.
Low inventory is the other clue. When there are only a few months' worth of homes for sale at the current pace, buyers compete for what's available.
What it looks like on the ground
Homes sell quickly, sometimes within days. Sellers often set an offer date and review all offers at once, and some buyers try a bully offer before that date.
Multiple offers can push prices above the asking price. Buyers may shorten or drop conditions, such as financing or inspection, to make their offer stronger.
Sellers may also receive offers with larger deposits or flexible closing dates, as buyers look for ways to stand out beyond price.
Tips for buyers competing in a seller's market
Get a mortgage pre-approval before you shop, and know your true limit, including closing costs.
If you're thinking about a firm offer with no conditions, consider a pre-offer home inspection if the seller allows one, and talk to your lender about the risk of an appraisal coming in below your price.
In Ontario, sellers and their brokerages can now choose to disclose the details of competing offers to other buyers, but they don't have to. You may still be bidding without knowing the other prices.
Buyers who submit a written offer must still be told how many competing written offers there are.
Tips for sellers
Even with strong demand, pricing still matters. A realistic list price tends to attract more buyers, and a home priced far above recent sales can stall.
Look past the highest number. A clean deposit, a solid closing date and fewer conditions can make a slightly lower offer the safer one.
Common questions about seller's market
What is a seller's market in real estate?
A seller's market is when buyer demand outpaces the supply of homes for sale. In Canada it is often measured by a sales-to-new-listings ratio above about 60%, which tends to bring faster sales, multiple offers and stronger prices. Conditions can differ by home type and neighbourhood.
Should I waive conditions in a seller's market?
Waiving conditions can make an offer more competitive, but it shifts risk to you as the buyer. If financing falls through or the home has hidden problems, you may still be bound to close, so talk to your lender and lawyer first. A pre-offer inspection can reduce some of that risk.
Can a seller tell me what other buyers offered in Ontario?
Yes, if the seller agrees. Under Ontario rules in effect since December 1, 2023, a seller can direct their brokerage to share the details of competing offers with buyers, but there is no requirement to do so. Every buyer who made a written offer must still be told how many competing offers exist.
Do homes always sell over asking in a seller's market?
No, homes don't always sell over asking even in a seller's market. Results depend on the list price strategy, the home's condition and location, and how many buyers are active for that type and price range at the time. Some homes still sell at or below asking.
Sources
General information for Ontario, updated October 2026. Not legal, tax or mortgage advice. Rules change, so confirm with your lawyer, lender or the source above before you rely on it.