A well-supplied Ontario housing market throughout the spring and early summer provided potential homebuyers with more options and greater negotiating power on prices. This shift led to numerous properties being sold below their original asking prices, with some struggling to finalize sales even after multiple price reductions.
One notable example is a Guelph townhouse that experienced a significant price drop. Initially sold for $765,000 in October 2023, the home was re-listed just six months later for $789,900 but failed to attract any buyers. Despite boasting three bedrooms, four bathrooms, stainless steel appliances, and a walkout to a stone patio, the property struggled to sell.
The townhouse’s sales history, shared by @ShazieGoalie on X, reflects the broader trends in Ontario’s housing market. After being put back on the market in May with a slight price reduction, the listing was terminated and re-listed in June for $777,777. By July, the home was re-listed twice more, with asking prices of $699,900 and $749,000. Eventually, the townhouse sold for $720,000, representing a $45,000 loss compared to its price less than a year earlier.
This Guelph townhouse is not an isolated case. Many properties across Ontario have been sold well below their listing prices this year. For instance, a three-bedroom home in Toronto’s Silverthorn neighbourhood sold in June at a $207,500 loss, while a Mississauga condo sold at a $125,000 loss after 10 unsuccessful attempts to find a buyer.
Despite these price drops, the Canadian Real Estate Association (CREA) has noted some early signs of renewed activity in the country’s housing market following the Bank of Canada’s interest rate cut. According to CREA’s Senior Economist, Shaun Cathcart, “What’s happening right now is that sales were up from May to June, market conditions tightened for the first time this year, and prices nationally ticked higher for the first time in 11 months.” The report indicates that national home sales climbed 3.7 percent month-over-month in June, signaling a potential shift in market dynamics.
While year-over-year comparisons remain unfavorable due to the high buyer activity in the previous spring, the recent uptick in sales suggests that the market may be stabilizing, with conditions slowly improving for sellers.