In Toronto’s hyper-competitive housing market, a perplexing new trend has emerged that’s raising eyebrows among industry experts and potential homebuyers alike: properties listed for the symbolic price of just $1. This unorthodox pricing strategy, increasingly visible across the Greater Toronto Area, is not an unprecedented fire sale but rather a calculated tactic that some real estate professionals argue is misleading consumers during an already challenging market period.
“These dollar listings create artificial excitement and can waste everyone’s time,” explains Richard Garton, a veteran Toronto real estate analyst with over 20 years of experience monitoring Canada’s housing market. “Buyers see these listings and think they’ve discovered some hidden opportunity, when in reality, the sellers have no intention of accepting anywhere near that price.”
The Ontario Real Estate Association has expressed concern about this practice, particularly as it coincides with the city’s ongoing housing affordability crisis. The average Toronto home price currently sits at approximately $1.13 million, making genuine entry-level options increasingly scarce for first-time buyers and middle-income families.
Industry insiders suggest these listings typically employ one of two strategies: either starting with the $1 price tag to generate a bidding war in hot neighborhoods, or using the attention-grabbing figure to drive traffic to properties in less desirable areas that might otherwise be overlooked. Either way, the practice creates market distortions that can significantly impact buyer psychology.
“It’s essentially a form of bait-and-switch marketing,” notes Sophia Chen, housing economist at the University of Toronto. “The problem is that it further erodes trust in a market where many Canadians already feel the system is working against them. When a listing shows $1 but the seller expects seven figures, it creates unrealistic expectations and frustration.”
The controversial pricing method comes amid broader political debates about housing affordability and transparency in Canada’s largest city. Municipal authorities are currently reviewing regulations around real estate marketing practices, though any potential restrictions would need to balance consumer protection with the industry’s traditional pricing freedoms.
For prospective buyers like Michael Okonkwo, who has been searching for a family home in the GTA for over 18 months, these listings represent another hurdle in an already challenging process. “Every time I see a dollar listing, I know it’s not real, but you still can’t help wondering if this might be the rare exception,” he told CO24. “It’s exhausting to constantly filter through these marketing gimmicks when you’re seriously trying to find a home.”
Real estate boards across Canada have historically permitted creative pricing strategies, arguing that final sale prices—not listing prices—are what ultimately determine market value. However, as housing has evolved from simple shelter to complex investment vehicle, the ethics of such practices face increasing scrutiny.
Some realtors defend the practice as simply another tool in a competitive marketplace. “In certain scenarios, starting at a dollar can actually benefit sellers by generating maximum exposure and allowing the market to determine true value,” argues Priya Singh, who has used the strategy successfully for clients in Toronto’s east end neighborhoods.
As world housing markets experience volatility and interest rate fluctuations continue to impact buyer behavior, these attention-grabbing tactics raise a fundamental question: in our housing system, where is the line between creative marketing and misleading practice, and who should be responsible for drawing it?
