As the GTA’s housing market remained well-supplied throughout August, average home prices also edged slightly lower, meaning many properties— including this home in Caledon — were sold well below their listing prices.
According to its listing, this custom-built four-bedroom bungalow is nestled on a one-acre lot and boasts a three-car garage, wooden deck, finished walkout basement, and open-concept rec room.
The property was first sold for $2.46 million in April 2022, during a time when cheaper borrowing rates shot demand up across the region’s housing market and skyrocketed prices.
Just over a year later, the home was re-listed for roughly $2.3 million, and again the following month for just under $2.4 million. In October 2023, the home was re-listed for the same price but failed to attract any buyers.
“Cataclysmic Loss in Caledon” 😱
📍Caledon, ON 🇨🇦
Underwater $660K loss on a Power of Sale 💥
Bought in 2022 for $2.5M, with $1.7M in financing at prime + 7.8%, the owners of this Caledon detached ran into trouble and allegedly have been in default since January 2023!
The… pic.twitter.com/iIcCCCtmTF
— Shazi (@ShaziGoalie) August 30, 2024
Finally, the home was put back on the market for $1.99 million in April 2024 and eventually sold for $1.8 million last month, representing a $660,000 loss when compared to its price just two and a half years earlier.
The GTA’s well-supplied market throughout the summer meant that many homes sold well below their listing prices, including a four-bedroom home in London that was sold at a loss of $650,000 following four attempts to sell, as well as a custom-built home in Oshawa that sold at a staggering $800,000 loss.
According to the Toronto Regional Real Estate Board’s (TRREB) latest report, the Bank of Canada’s rate cut announced on Wednesday will lead to further improvement in affordability across the region.
“First-time buyers are especially sensitive to changes in borrowing costs,” said TRREB President Jennifer Pearce.
“As mortgage rates continue to trend lower this year and next, we should experience an uptick in first-time buying activity, including in the condo market.”
In August, GTA home sales were down on a year-over-year basis, and the average selling price decreased to $1,074,425.
As borrowing costs trend lower over the next year-and-a-half, home buyers will initially benefit from both lower monthly mortgage payments and lower home prices,” said TRREB Chief Market Analyst Jason Mercer.
“Even as demand picks up, especially in 2025, it will take time for the inventory of listings to be absorbed. Ample choice in the market will help keep price growth moderate, at least in the initial phases of recovery.”
Cityscape Real Estate Ltd., Brokerage
