A house that just sold with a huge $800,000 loss is the latest sign of homes in and around the GTA going for way less than their original prices.
This one’s in Oshawa’s Eastdale area. It’s got four plus two bedrooms, six bathrooms, a fancy kitchen with a deck exit, a main-floor office, a gas fireplace, a walk-in closet in the master bedroom, and even a finished basement with a sauna.
The place was custom built and first sold back in March 2022 for $2.55 million – which was when borrowing rates were lower and demand across Ontario’s housing market was sky-high, pushing prices up.
By April 2024, it went back on the market at $1.78 million but didn’t get any takers. After that flop, it was listed again at $1.799 million and finally sold for $1.75 million – that’s exactly $800,000 less than what it went for just two years earlier.
📢 Oshawa Obliteration 💥
📍 Oshawa, ON 🇨🇦
Bought at the height of the market in 2022, the buyers took out a whopping $1.4M loan with more than $10k in monthly payments for this behemoth of a house in Oshawa.
The “B” Lender (Riverrock) stepped in on April of this year and… pic. twitter. com/i Kk COCZFfg
– Shazi (@Shazi Goalie) July 3, 2024
The home was apparently listed as a power of sale rather than through a standard sale process. This clause lets lenders sell your property if you default so they can get paid back on their mortgage loan.
This means the lender pushes the sale to recover what they’re owed from selling it publicly while any leftover money goes to the owner. That’s different from foreclosure where lenders take over ownership and keep all proceeds from selling.
This Oshawa spot isn’t alone either when it comes to big losses recently. Earlier this year in January, there was a six-bedroom home in Brampton that sold for $600k less than its purchase price; an 11-bedroom place near York University Village dropped by $400k in May; and another home in Cambridge lost about $825k after trying multiple times to sell.
The Canadian Real Estate Association (CREA) reported May was “relatively uneventful” across many Canadian housing markets since national home sales dipped slightly compared to April.
This gave some buyers more room to push sellers down on price tags. Sales activity recorded over Canadian MLS systems fell by 0.6 per cent between April and May 2024-still just below average compared to the past decade.
Still though, CREA’s Senior Economist Shaun Cathcart suggests this might be Canada’s last quiet month for housing now that interest rates have dropped again.
Lead photo by
Royal Le Page Connect Realty
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