Last week, a stone home in the heart of Rosedale was sold for a record-breaking $2.1 million over the asking price. This clearly highlights Toronto's growing housing supply problem. While the listing price of the house at 7 Rosedale Rd was $4.5 million, its purchasing price during its selling process went up to $6.6 million.

The four-bedroom, three-bathroom home has a one-of-a-kind cottage-style structure with period details featuring an overgrown backyard garden and a stone exterior. Jimmy Molloy, the real estate agent of Chestnut Park who sold the home, believed that such stunning English cottage-like details contributed to the sale. He further added that the house may not seem very big or expansive, but it has large rooms with ceilings at a considerable height.

The overwhelming supply problem is not a new phenomenon in the Toronto market. It has been said that the historically low-interest rates are driving the market. But the fact is that the historic low inventory is the substantial issue here. According to an October Move Smartly report new listings in September were significantly lower than in the years from 2018 to 2020.

By the end of September, the Toronto area, in particular, had less than 4,700 houses for sale. This is a decrease of 53% from 2020 inventory levels. According to the city's 10-year average, there should be approximately 11,000 active house listings in September. According to the report, 74% of houses sold in Toronto in September sold for more than the asking price.

There have been rumours throughout the pandemic that the city’s residents are considering moving to the suburbs and beyond. However, with many people working partial weeks from home, they are realizing the value of living close to their office and all the conveniences the city has to offer.

All of this data emphasizes the importance of homeownership. Despite a severely overpriced housing market, there is still a lot of demand and because of the need for uniqueness, a house like 7 Rosedale Rd became a very popular choice. If it’s one-of-a-kind, it becomes more valuable. Indeed, rarity adds to the value.

Take a look at some details of this high-interest home:

All photos were taken by Michael Peart

Wondering what your home might sell for? There is an easy way to get an online home evaluation to find out what your property is worth.