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The History
Between 2020 - 2021 the houses in Toronto, Ontario were being sold $100K - $300K over asking. The 416 area homes were selling up to 80% over the asking price. This decreased as within March 2023 homes have been selling for up to 39% over the asking price. It is most often seen within GTA home listings in the $1M price point.
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Example: a home within Bridal Path sold for $701K over asking.
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Causes
1. This is a sales strategy used by the selling team. The home is intentionally underpriced
in hopes of gaining more awareness and leads. This has helped realtors fill open houses
and gain more home offers. Doing this for too long can lose the buyers interest.
2. Buyers resorting to the fear of missing out or entering bidding wars can lead to home
purchases higher than the listing price.
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Currently
The sales strategy is being used less often but is still seen. Inventory is still a big factor in home sales. With minimal developments due to supply shortages and the rise in demand, attention grabbing is acquired easier than in 2020.

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