Toronto home sold at $500k loss after 3 weeks on market is sign of desperate times

Although market conditions in Toronto tightened up in October, prospective home buyers still benefitted from lots of inventory and increased choice. In fact, many homes — including one North York property — were resold well below their original price tags. 

The four-bedroom, five-bathroom home was custom-built, and comes with custom-trimmed windows, a two-car garage, a finished basement with a walk-up entrance, and an expansive backyard. 

The home’s sales history was shared on X by @ShaziGoalie, who regularly covers notable happenings, like dramatic home price losses, in Ontario’s turbulent real estate market. 

Despite being sold for a staggering $3.1 million back in April 2022, the home was sold last week for $2.6 million after sitting on the market for just three weeks — representing a loss of $500,000 when compared to its price just two and a half years earlier. 

“Toronto’s real estate market has been known for its rollercoaster highs and lows. But what we’re witnessing now might be a shift unlike anything we’ve seen before,” the real estate creator said in a video accompanying the home’s sales history. 

“North York, in particular, is feeling the pinch. This suburban area, known for its family-friendly communities and detached homes has become a hotspot for price drops. Despite being a historically strong market, properties here are struggling to find buyers.” 

According to the latest Toronto Regional Real Estate Board (TRREB) market report, home sales increased strongly year-over-year in October 2024, and the average selling price was up slightly on an annual basis. 

“While we are still early in the Bank of Canada’s rate cutting cycle, it definitely does appear that an increasing number of buyers moved off the sidelines and back into the marketplace in October,” said TRREB President Jennifer Pearce.

“The positive affordability picture brought about by lower borrowing costs and relatively flat home prices, prompted this improvement in market activity.” 

On a seasonally adjusted basis, October sales increased month-over-month compared to September, and the MLS Home Price Index Composite benchmark was down by 3.3 per cent year-over year. The average selling price was up by 1.1 per cent compared to October 2023 to $1,135,215.

“Market conditions did tighten in October, but there is still a lot of inventory and therefore choice for home buyers. This choice will keep home price growth moderate over the next few months,” said TRREB Chief Market Analyst Jason Mercer.

“However, as inventory is absorbed and home construction continues to lag population growth, selling price growth will accelerate, likely as we move through the spring of 2025.”