The recent wave of $1 home listings across Toronto’s real estate market has raised eyebrows among prospective buyers and industry professionals alike. Behind these attention-grabbing price tags lies a complex strategy rather than actual bargain properties in one of Canada’s most expensive housing markets.
As I walked through a recent open house in Etobicoke advertised at the symbolic $1 price point, the property’s actual value—closer to $1.2 million—became immediately apparent. The selling agent, Ramandeep Singh, explained the thinking behind this increasingly common practice.
“It’s about generating maximum exposure and competitive bidding,” Singh told me as potential buyers streamed through the detached three-bedroom home. “In today’s market, we want to attract as many offers as possible to drive the final price up.”
This strategy has gained significant traction over the past year. According to the Toronto Regional Real Estate Board, nearly 40% of properties listed below $100,000 in the Greater Toronto Area ultimately sold for at least 60% above their listing price. This stark contrast between listed and selling prices has sparked debate about transparency in the market.
Lauren White, a Toronto resident who has been house-hunting for eight months, expressed frustration with the practice. “It feels misleading,” she said. “You see these listings pop up in your price alerts, only to discover they’re actually way beyond your budget. It wastes everyone’s time.”
The Ontario Real Estate Association acknowledges the controversial nature of these symbolic listings. Their spokesperson, Daniel Chen, confirmed they’re technically permissible but emphasized ethical considerations. “While not explicitly prohibited, these practices raise questions about clear communication with consumers and managing expectations appropriately.”
Real estate analyst Priya Sharma from Royal LePage points to market conditions driving this trend. “With mortgage rates stabilizing and inventory still tight across the GTA, sellers are looking for any edge to stand out,” Sharma explained. “The $1 listing creates immediate curiosity and often results in more showings than traditionally priced properties.”
The strategy isn’t without risks, however. Some sellers who’ve attempted this approach have seen their properties languish on the market when buyers, wary of bidding wars, simply avoid engaging altogether.
Toronto real estate lawyer Samantha Goldstein cautions both buyers and sellers about potential complications. “For sellers, there’s no guarantee this approach will work in your favor. For buyers, always research comparable sales in the neighborhood to understand true market value before making an offer.”
The City of Toronto’s Housing Secretariat has noted this trend in their quarterly market reports, though they’ve stopped short of suggesting regulatory intervention. Their latest data shows the average Toronto home price hovering around $1.1 million despite recent market corrections.
Beyond the headline-grabbing $1 listings, this phenomenon highlights Toronto’s ongoing housing affordability challenges. With the benchmark price for detached homes still exceeding $1.5 million in many neighborhoods, creative—and sometimes controversial—selling tactics continue to emerge.
First-time buyer Jordan Williams summarized the sentiment many prospective homeowners feel: “These listings are just another reminder of how difficult it is to enter this market. The $1 home might grab attention, but the reality behind it is much more sobering.”
As Toronto continues grappling with housing accessibility issues, industry observers suggest more substantive solutions are needed beyond marketing tactics. Recent federal initiatives like the First-Time Home Buyer Incentive have attempted to address affordability, though their impact remains limited in high-cost markets like Toronto.
For now, the $1 listing phenomenon persists as both symptom and symbol of Toronto’s complex real estate landscape—one where creativity in marketing sometimes outpaces innovations in actual affordability.
