Bidding wars still happen in Kingston and the surrounding area, but they look very different from what they did during the peak pandemic years. During COVID, tight inventory, steady demand, and historically low interest rates created conditions where bidding wars became routine. It was not unheard of to see twenty or more offers on a single property. That level of competition is no longer typical. Today, when bidding wars do occur, they usually involve a small handful of buyers rather than dozens.
A bidding war occurs when more than one buyer submits an offer on the same property, and competition pushes buyers to raise the price or improve the terms. Multiple offers do not automatically mean a bidding war, and the highest price does not always win. Sellers often consider closing dates, financing strength, conditions, and overall certainty alongside price.
Ontario has traditionally used a closed, or blind, bidding system where buyers submit offers without knowing the details of competing bids. That system is still widely used. Sellers now also have the option to allow open bidding, where specific offer details can be disclosed so buyers can see how they compare. Open bidding is optional, not mandatory, and is used selectively depending on the property and the seller’s comfort level.
For buyers in today’s market
Buyers should understand that current bidding activity varies by property type and price range. Well-priced homes in desirable locations can still attract competition, but these situations are now more property-specific rather than market-wide.
Buyers should focus on the overall strength of their offer, not just the price. Clean financing, reasonable conditions, and a closing date that works for the seller often matter as much as the number on the first page.
For sellers in today’s market
Sellers should be cautious about relying on a bidding war as a strategy. While competition is still possible, it is no longer automatic. Accurate pricing remains the most effective way to attract serious buyers.
In today’s market, a competitive situation might involve three, four, or five offers rather than the twenty or more sometimes seen during the pandemic. Recognizing this shift helps set realistic expectations from the outset.
Escalation clauses and why they are not always accepted
Escalation clauses are sometimes used by buyers who want to stay competitive without clarity around where the final price may land. They allow a buyer to agree to beat another offer by a set amount, up to a defined maximum.
A simplified example might read:
The Buyer agrees that if the Seller receives another bona fide written offer acceptable to the Seller, the Buyer will increase the Purchase Price by $2,000 above the competing offer, up to a maximum Purchase Price of $725,000. Proof of the competing offer shall be provided upon acceptance.
Not all sellers will accept escalation clauses. Some prefer straightforward offers without moving parts, while others are uncomfortable with the additional complexity. As a result, escalation clauses should be used selectively and only when they suit the situation.
Bottom line
Bidding wars are no longer the default in Kingston and area real estate. They still happen, but they are smaller, more focused, and more dependent on the individual property. Understanding when competition is real and how to respond to it matters far more today than relying on assumptions from the pandemic market.
FAQ
Are bidding wars still common in Kingston?
They still occur, but far less often than during the pandemic. When they do happen, they usually involve a small number of buyers rather than dozens.
Does the highest offer always win in a bidding war?
No. Sellers often consider financing strength, conditions, closing dates, and overall certainty alongside price.
Is open bidding required in Ontario?
No. Open bidding is optional. Closed or blind bidding remains widely used.
Are escalation clauses common in Kingston offers?
They are used occasionally, but many sellers prefer straightforward offers and will not accept escalation clauses.
Should buyers expect homes to sell far over asking?
Not as a rule. Many homes sell through negotiation rather than competitive bidding.
Can a bidding war develop even if no one plans it?
Yes. A bidding war can grow simply because several buyers independently value the same property. There is no rule that a bidding war has to be engineered by an agent or seller.
Can an agent claim there are other offers if there aren’t?
No. Ontario rules prohibit a listing agent from suggesting or implying competing offers unless there are actual written offers signed and ready to present to the seller.