Home sales throughout the GTA increased year-over-year in September, as buyers in the region continued to take advantage of more affordable market conditions brought about by interest rate cuts.
The better-supplied market meant that buyers benefitted from increased negotiating power on prices, which led to a year-over-year price declines and resulted in many homes being sold well below their listing prices, including this semi-detached home in Brampton.
According to its listing, the home boasts a finished basement with a separate entrance and a kitchen with stainless steel appliances, as well as a walkout from the breakfast area to a large rear patio.
The home was first sold for $1.4 million in January 2022, during a period when cheaper borrowing rates contributed to heightened demand across the GTA’s real estate market. The home was successfully leased throughout 2022 and put back on the market for just shy of $1.05 million in July 2024.
After sitting on the market for a few weeks, the home finally sold for $985,000 at the end of September, representing a staggering loss of $415,000 when compared to its price shy of three years earlier.
📢 Brampton Blowout 💥
📍Brampton, ON 🇨🇦
This Brampton semi was bought in 2022 for $1.4M, more than $200k over asking. 💸
The owner leased it out before throwing in the towel and selling for a whopping $415k loss last week. 😳
This is probably the biggest loss I have seen… pic.twitter.com/UtwobPpC0q
— Shazi (@ShaziGoalie) October 2, 2024
According to the Toronto Regional Real Estate Board (TRREB)’s latest report, the MLS Home Price Index Composite benchmark was down by 4.6 per cent year-over-year in September 2024. Additionally, the average selling price of $1,107,291 was down by a lesser one per cent compared to the September 2023 average of $1,118,215.
“As buyers take advantage of changes to mortgage lending guidelines and borrowing costs trend lower, home sales will steadily increase in relation to population growth,” said TRREB President Jennifer Pearce in the report.
“With every rate cut, a growing number of GTA households will afford a long-term investment in home ownership, including first-time buyers.”
TRREB Chief Market Analyst Jason Mercer added that the annual improvement in September home sales was more than matched by the increase in new listings over the same period.
“This resulted in a better-supplied market and increased negotiating power for buyers re-entering the market,” Mercer said.
“The ability to negotiate on price led to moderate year-over-year price declines, particularly in the more affordable condo apartment and townhouse segments, which are popular with first-time buyers.”
Several other properties across the GTA have sold well below their listing prices over the past few months, including another Brampton home that sold at a $487,000 loss in September, and properties in Mississauga and Milton that sold at $532,000 and $350,000 losses, respectively.
Harvey Kalles Real Estate Ltd., Brokerage
