Even though the GTA housing market saw a brief surge last spring, buyers around the area have generally enjoyed more options and room to negotiate this year. This has pushed some sellers to slash prices by hundreds of thousands of dollars just to get a deal done.
This Cambridge, Ontario house, which recently sold at a big loss, is one example of many properties in the province that couldn’t find buyers despite steep price cuts.
The listing shows that this five-bedroom, four-bath home in Cambridge’s Hespeler Village features nine-foot ceilings, a professionally landscaped yard, a pool, and a chef’s kitchen.
The 3,300-square-foot house was originally bought in February 2022 for $2,275,000. Back then, borrowing was cheaper and prices were shooting up across Ontario’s real estate market.
A few months later it went back on sale for just under $1.5 million. Even with such a deep discount, no one bit and the house was taken off the market again.
“Cambridge Collapse” 🏠🔥
📍Cambridge, ON 🇨🇦
In 2022, buyers agreed to purchase this Cambridge home for $2.3M. After numerous extensions and proposed VTBs, the buyers eventually walked away. The sellers launched a mega $2.3M lawsuit against them for breach of contract. 💼⚖️… pic. twitter. com/n0X5v Kq Tcd
– Shazi (@Shazi Goalie) June 26, 2024
A month after that failed attempt, it was listed again just under $1.6 million but still didn’t sell.
The house finally sold earlier this month for $1.45 million – which is an eye-popping $825k less than what it went for back in 2022.
A lot of homes across Ontario have also been selling at heavy losses this year. For example, a six-bedroom place in Brampton dropped about $600k when it sold in January and another big home with 11 bedrooms near York University Village lost roughly $400k when it sold in May.
Ontario home sold at $800k loss after 11 failed attempts to sell 🏠 https://t. co/np ZEPy XUtx #Ontario #Real Estate
– blog TO (@blog TO) January 5, 2024
The latest report from the Toronto Regional Real Estate Board (TRREB) shows sales stayed pretty low last month too – which keeps things good for buyers right now.
Still TRREB’s Chief Market Analyst Jason Mercer points out that as interest picks up again around here soon enough sellers might see prices climbing back up because buyers will start competing more fiercely.
Total sales reported through TRREB’s MLS system hit 7,013 homes in May 2024 – down by nearly 22 percent compared with May last year when there were almost 9K sales recorded.
“As borrowing costs decrease over the next 18 months, more buyers are expected to enter the market, including many first-time buyers,” added TRREB President Jennifer Pearce.
“This will open up much-needed space in a relatively tight rental market.”
Lead photo by
Royal Le Page Crown Realty Services
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