Houses selling for way over the asking price isn't something new to Toronto. It's a longstanding technique used by realtors to generate interest and drive bidding wars on properties. By starting low, more people start dreaming big.

That's why it's not that surprising to hear of a Toronto home selling for $370,000 over its listed price. When you get a look at the home in question and know its selling price, however, it's a bit of a different story.

This tiny house at 69 Muriel Ave. in Pape Village just sold for $1,050,000, reports the Globe and Mail. According to the paper, it was built in 1912 and its last assessment in January 2016 marked its value at $645,000.

While housing prices climbed significantly last year, the average increase doesn't entirely account for the spike here. There's a lot of factors at play, but the incredibly low inventory of detached homes is likely the chief reason for the huge sale.

This early 20th century house will be torn down and contemporary home will be built in its place that takes advantage of the deep lot (78 feet). In the meantime, you can bet that future houses listed in the area will be a bit more brave with their asking prices.