A townhouse in Toronto that's been listed four times in the past few weeks shows just how much home prices in the city tend to fluctuate on a month-to-month basis, given the overall decline in buyer interest thanks to affordability concerns. 

The two-bedroom, two-bathroom townhouse, located at 46 East Liberty St., was first listed on the market on Oct. 2, 2023, for $1,074,000. Just two weeks later, nearly $100,000 was knocked off the home's price, when it was relisted at $999,000. 

According to a recent report from Zoocasa, prospective homebuyers in Canada have taken a step back from the real estate market as interest rates remain sky-high — which may explain why the townhouse knocked another $100,000 off its price on Nov. 3. 

"The cost of borrowing has made buying a home a harder prospect and as a result, many potential buyers are choosing to shelve their home buying plans for the time being," the report reads. 

The townhouse has varied as much as $500,000 in price since October. Photo: RARE Real Estate Brokerage.

Now, in an effort to presumably facilitate a bidding war situation, the townhouse has been relisted yet again for $499,999 — less than half the price it was originally listed for in early October. 

As evident by this listing and other properties in Toronto, many homes are selling for less than their listing price, while others are sitting on the market for long periods times in cases where sellers are not willing to budge. 

A Zoocasa report in October found that while the average listing price in Toronto was $1,378,752, the average sale price was $1,119,452, representing a difference of 18.8 per cent. 

The home's price has varied dramatically over the past few weeks. Photo: House Sigma. 

Despite this, Toronto Regional Real Estate Board president Paul Baron says that record population growth and a relatively resilient GTA economy have kept the overall demand for housing strong. 

"However, more of that demand has been pointed at the rental market, as high borrowing costs and uncertainty on the direction of interest rates has seen many would-be home buyers remain on the sidelines in the short term. When mortgage rates start trending lower, home sales will pick up quickly," Baron explained. 

Toronto realtors reported 4,646 GTA home sales through TRREB's MLS System in October 2023, which was down 5.8 per cent when compared to October 2022.