Though the Toronto real estate market is notorious for its fierce competition and exorbitant pricing — even during a global pandemic — there was one particular house listed this summer that really had residents buzzing about its listing price.

The ad for the two-bedroom, one-bathroom tiny "house" (which is really more of a shed) at 300 Euclid in Little Italy had people bemoaning the housing situation in the city, seeing as it was listed for a cool $1 million despite hardly being liveable.

And now, in a turn of events that may be surprising to some laypeople but not at all a shock to those in the real estate industry, the home has sold for $808,000 more than its asking price just seven days after hitting the market.

Despite all appearances, realtors said that what was advertised as a "rare detached bungalow located in the heart of Toronto" was actually kind of a steal for the listing price, given the 20 foot-by-120 foot lot it sits on and the neighbourhood that it's in.

"You're paying for the land and a two-car garage, which is unheard of for a price like that," Re/max Hallmark sales representative Derek Ladouceur told blogTO of the property when it was first listed. "It's going to sell for over a million."

If you were banking on the COVID-19 crisis and resulting recession to lower home prices in Toronto, you may want to take a look at what a million dollars can get you in the city right now. https://t.co/tAlHUQbxUz

— Sabine Ghali (@SabineGhali) August 3, 2020

Ladouceur also noted that the buyer would most likely be someone interested in the property alone, and that the state of the house itself is actually a draw, as it would be far easier and cheaper to acquire permits, demolish and rebuild. In other words, it's a typical Toronto teardown.

The fact that the house is detached, too, is rare for the area and serves as a massive draw — enough so that the home received more than a dozen bids.

Ladouceur said that, based on other recent sales in the area, a comparable property with a beautiful home on it would potentially cost more than three times as much, whereas a new build could realistically run someone as low as $600,000 to $700,000 — which, in addition to the price of the lot at 300 Euclid, makes it a great deal.

"When people are searching for homes that they can flip or build their dream home on... the nicer the home, the more you're going to pay for the lot, obviously. So sometimes you want a home that looks like it's about to fall over so you can build what you're looking for."

With all of the factors that contribute to making Toronto's market so hot, it seems that buying a home in the city is going to continue to be frustratingly out of reach for the majority of us, regardless of economic conditions that would normally suggest a bit of a break for buyers.