If you read the news, you might have believe that every property that hits the market sells for over asking. Heck, just this month a house on the Danforth sold for $1.2M over asking!! This leads people into thinking they will never be able to afford something in this city and discourages people from even getting started looking.
The big problem is so many houses are listed RIDICULOUSLY under market value in order to create a bidding war because Toronto has a lot of pent up demand. Sometimes these houses will sell for over market value, but quite often many of the places you see “SOLD FOR OVER ASKING” are really just sold for around market value and sometimes even less because they priced it too low to begin with.
In fact over the last month of the deals I have that have closed or are closing 2 sold for over asking and 2 sold for under asking where I was representing the buyer. I was able to negotiate tens of thousands off the list price to get my clients a better price.
So long story short, not every house in Toronto is selling for over asking. The ones that were priced ridiculously low will almost always sell over asking but there are still deals to be had with properties priced closer to market value if you look hard enough or work with an expert who can find them for you.