Despite some momentum in Canada’s housing market this summer, national home sales hit a pause in July, according to the Canadian Real Estate Association’s (CREA) latest report.
As a result, many properties have sat idle on the market for long periods, and have been forced to make hefty price reductions just to finalize a sale.
The latest example is a four-bedroom home in London, Ont. that was first sold for $1.699 million back in April 2023. Just a few months later, the home was re-listed for $1.649 million.
Throughout 2024, the home was put back on the market multiple times — once in February for $1.55 million, once in May for $1.399 million, and once in June for $1.29 million.
🚨 POWER OF SALE OF THE DAY 🚨
📍 London, ON 🇨🇦
London’s $649K Ravine Ridge Wipeout
Original Listing: $1.7M in April 2023
Final Sale Price: $1.05M in August 2024
Total Loss: $649k
4 Price Terminations in 16 Months
Bank Sale in a Premier North London Location pic.twitter.com/BUpE9oEv04
— Shazi (@ShaziGoalie) August 26, 2024
Following four failed attempts to sell, the property was finally sold for $1.05 million last week — representing a loss of roughly $650,000 when compared to its price just a year and a half earlier.
It’s important to note that this specific property was put on the market as a power of sale, which occurs if a homeowner stops paying their mortgage and defaults on the loan, allowing the home to be sold to recover the lender’s principal, interest, and expenses.
According to the Canadian Real Estate Association’s latest report, national home sales edged back 0.7 month-over-month in July, while the number of newly listed properties ticked up 0.9 per cent month-over-month.
“While it wasn’t apparent in the July housing data from across Canada, the stage is increasingly being set for the return of a more active housing market,” said James Mabey, Chair of CREA.
“At this point, many markets have a healthier amount of choice for buyers than has been the case in recent years, but the days of the slower and more relaxed house hunting experience may be somewhat numbered.”
The report notes that the national composite home price index edged up 0.2 per cent from June to July, making it the second, and the largest, gain in the last year.
“With another rate cut announced on July 24, we’ve now seen two rate cuts in a row, and the expected pace of future policy easing has steepened considerably, with markets now anticipating rate cuts at every remaining Bank of Canada decision this year,” said Shaun Cathcart, CREA’s Senior Economist.
“Combine that with a record amount of demand waiting in the wings, and the forecast for a rekindling of Canadian housing activity going into 2025 has just gone from a layup to a slam dunk.”
RE/MAX Advantage Sanderson Realty, Brokerage
