Ontario home sold at massive $430k loss after repeated attempts to sell

Despite a slight uptick in GTA home sales in July relative to last year, many properties — including this Milton home — have sold well below their original selling prices this summer. 

According to its listing, the three-bedroom, three-bathroom home boasts wall-to-wall windows, a custom kitchen, a laundry room with custom cabinets, a replaced roof, as well as a new hot tub. 

The property was originally sold in March 2022 for $1.655 million, at a time when cheaper borrowing rates heightened demand and drove home prices up across the region. 

Two years later, the home was re-listed for just under $1.3 million, but failed to attract any buyers. The home was put back on the market in June 2024 for just under $1.3 million. 

The property finally sold in July for just under $1.29 million — representing a loss of $436,000 when compared to its price just two years earlier. 

"Brampton and Milton Are Getting Smoked"

📍Brampton & Milton, ON 🇨🇦

Two detached homes, one in Brampton and the other in Milton, bought at the same time in 2022 (over asking), sold days ago for whopping $430k+ losses 😱.

This is starting to snowball folks.

I am not sure how… pic.twitter.com/RvGZKXvxrZ

— Shazi (@ShaziGoalie) August 3, 2024

Other properties to sell well below their original prices include an Oakville townhouse that sold at a significant $316,000 loss in July, and a three-bedroom home in Toronto's Silverthorn neighbourhood that sold at a loss of $207,500 in June. 

According to the Toronto Regional Real Estate Board's (TRREB) latest report, buyers continued to benefit from more choice in the GTA marketplace throughout July, with annual growth in new listings outstripping that of sales. 

"It was encouraging to see an uptick in July sales relative to last year. We may be starting to see a positive impact from the two Bank of Canada rate cuts announced in June and July," said TRREB President Jennifer Pearce.

"Additionally, the cost of borrowing is anticipated to decline further in the coming months. Expect sales to accelerate as buyers benefit from lower monthly mortgage payment." 

In July, the average selling price of $1,106,617 was down by 0.9 per cent over the July 2023 result of $1,116,950.

"As more buyers take advantage of more affordable mortgage payments in the months ahead, they will benefit from the substantial build-up in inventory," added TRREB Chief Market Analyst Jason Mercer.

"However, as inventory is absorbed, market conditions will tighten in the absence of a large-scale increase in home completions, ultimately leading to a resumption of price growth."