Even though the GTA real estate market saw a brief boost last spring, buyers around the area have enjoyed more options and negotiating power this year. Because of that, some sellers ended up cutting their prices by six figures to close deals.
This house in Cambridge, Ontario, is a perfect example. It sold recently at a huge loss after several attempts to find a buyer-even with big price cuts.
The listing shows this five-bedroom, four-bathroom home in Cambridge’s Hespeler Village has nine-foot ceilings, a professionally landscaped yard, a pool, and a fancy kitchen.
At 3,300 square feet, the house first sold back in February 2022 for $2,275,000 when borrowing was cheaper and prices were soaring across Ontario’s market.
A few months later though, it went back on the market for just under $1.5 million. Despite that big discount, no one bought it and it was taken off 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 later they tried again at just below $1.6 million but still couldn’t sell it.
This month finally saw the house sell for $1.45 million-a massive drop of $825,000 from its price two years ago.
This isn’t an isolated case either; other homes in Ontario have gone at big losses this year too. For instance, one six-bedroom house in Brampton sold with a loss of about $600K back in January while another large place near York University lost roughly $400K 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 update from Toronto Regional Real Estate Board (TRREB) shows sales stayed low last month across the region-making it better for people looking to buy right now.
BUT TRREB’s Chief Market Analyst Jason Mercer says once demand starts rising again around here sellers might see prices pushed up because buyers will compete more fiercely.
Total sales through TRREB’s MLS system hit 7,013 homes in May 2024-a drop of nearly 22% compared to almost 9 thousand last May.
“As borrowing costs decrease over the next 18 months,” TRREB President Jennifer Pearce added,”more buyers are expected to enter the market including many first-timers.”
“This will open up much-needed space in a relatively tight rental market.”
