Toronto condo sold at significant loss is just the latest case in troubling trend

A condo sold at a substantial loss in Toronto in May shows just how much prices fluctuate in the city's unpredictable real estate market. 

Located in The Beaches, this two-bedroom condo first sold for just under $1.5 million in April 2022. According to its listing, the condo boasts 1,300 square feet of living space, nine-foot ceilings, a primary bedroom with a walk-in closet, as well as a private terrace. 

The unit was put back on the market less than two years later in February 2024 for just shy of $1.33 million. However, the condo failed to attract any buyers and was re-listed the next month for just under $1.25 million. 

Despite these price reductions, the unit failed to sell again, and was eventually put on the market for $999,000. After six days on the market, the condo finally sold for $1.19 million in May 2024 — exactly $305,000 less than it originally sold for just two years earlier. 

"Toronto Beaches Getting Washed" 🌊🏖️

📍Toronto, ON 🇨🇦

Someone lost more than $300k on a Condo in the Beaches Toronto.

It was bought for $1.5M in 2022 and just sold for $1.2M.

Who paid $1.5M for a 2 bedroom condo in the Beaches? 🤔 pic.twitter.com/37r8pQ8qPu

— Shazi (@ShaziGoalie) July 8, 2024

In another example last month, a three-bedroom, two-bathroom apartment unit under condo ownership in Brampton also sold at a $238,000 loss after nine failed attempts to sell. 

A one-bedroom, one-bathroom unit in Oakville's Glen Abbey neighbourhood was also recently sold at a significant loss of $237,000. 

Ontario condo sold at staggering loss is just the latest case in worrying trend https://t.co/3pJo4HRSRw

— blogTO (@blogTO) July 2, 2024

According to the Toronto Regional Real Estate Board's (TRREB) latest report, June 2024 home sales in the GTA were notably lower compared to the same month last year. 

The report found that despite the Bank of Canada rate cut at the beginning of last month, many prospective buyers kept their home purchase decisions on hold, leading the market to remain well-supplied and resulting in a slight dip in the average selling price compared to June 2023. 

The average selling price of $1,162,167 was down by 1.6 per cent over the June 2023 result of $1,181,002.

"The GTA housing market is currently well-supplied. Recent home buyers have benefitted from substantial choice and therefore negotiating power on price," said TRREB Chief Market Analyst Jason Mercer.

"Moving forward, as sales pick up alongside lower borrowing costs, elevated inventory levels will help mitigate against a quick run-up in selling prices."