Ontario home sold at $580k loss after failed attempt to sell

Despite some subtle signs of rebound, Canada's housing market activity still appears to be stuck in the same "holding pattern" it's been in all year, according to a Canadian Real Estate Association (CREA) report released on Monday. 

As a result, many homes — including this four-bedroom property in Innisfil, Ont. — have sold well below their listing prices, as some buyers continue to struggle to make a profit on their investments. 

According to its listing, the 2,400-square-foot family home boasts a double garage, an open concept main floor with multiple upgrades, a fully fenced rear yard, and a primary bedroom with a five-piece ensuite. 

The home was first sold in February 2022 for $1.55 million, at a time when cheaper borrowing rates contributed to skyrocketing demand and prices across Ontario's real estate market. Two years later, the home was put back on the market for $1.1 million. 

📢 "Implosion in Innisfil"

📍Innisfil, ON 🇨🇦

$600k mega loss and a 'Power of Sale'. 💸

This Innisfil house was bought in 2022 for $250k over asking at $1.55M.

The owner then rented it out but ran into problems. 😬

Under 'Power of Sale', the lender DUCA Financial Services… pic.twitter.com/LfOEKscvHe

— Shazi (@ShaziGoalie) September 15, 2024

The home was re-listed in August 2024 for $999,900 and finally sold for $970,000 earlier this month, representing a loss of $580,000 when compared to its price just two and a half years earlier. 

According to a new CREA report, home sales recorded over Canadian MLS systems edged up by 1.3 per cent on a month-over-month basis in August 2024, reaching their highest level since January and their second highest in over a year. 

Despite this, the MLS Home Price Index (HPI) was unchanged month-over-month but was down 3.9 per cent year-over-year. 

"With ever more friendly interest rates now all but guaranteed later this year and into 2025, it makes sense that prospective buyers might continue to hold off for improved affordability, especially since prices are still well behaved in most of the country," said Shaun Cathcart, CREA's Senior Economist.

"With more interest rate cuts now expected between now and next summer, the stage is set for a faster return of demand, but we’re clearly not there just yet," added James Mabey, Chair of CREA.

"There are typically four times in any given year that see a burst of new supply that can excite the market and draw buyers off the sidelines, and those are the first weeks of April, May, June, and September. So, the first week of September saw not only a third rate cut, but also a lot of new properties for buyers to consider."