Thu. Jul 18th, 2024

Despite Rising Average Prices, Ontario home sold at $800k loss after 11 failed attempts to sell

In the Greater Toronto Area, the real estate market continues to display signs of unpredictability. Although there has been a general increase in average home prices, many properties in the region are selling for much less than their initial asking prices. For example, a luxurious five-bedroom house in Vaughan sold for a considerable $860,000 below its previous selling price after remaining on the market for 210 days.

Situated at 47 Grand Vellore Crescent, this expansive residence features seven bathrooms, 8,000 square feet of living space, and 16 parking spots, along with professional landscaping and a large deck. Originally purchased for $4.28 million in December 2021, the property was put back on the market in April 2023 for $4.68 million. After failing to attract buyers over four months, it was relisted in September 2023 at $3.68 million and ultimately sold for $3.42 million in April 2024.

This case is not isolated. Other properties in the GTA, such as a home in Burlington’s LaSalle neighborhood and a large residence in North York’s St. Andrew-Windfields area, have also sold for significantly less than their purchase prices after multiple listing attempts.

Despite these instances of loss, the Toronto Regional Real Estate Board (TRREB) suggests that the market might tighten soon, potentially leading to increased selling prices. TRREB’s latest report highlights a modest year-over-year rise in the MLS Home Price Index composite benchmark and notes a 1.3% increase in the average selling price, which now stands at $1,121,615. Jason Mercer, TRREB’s Chief Market Analyst, anticipates that the price growth will accelerate later this year, especially as sales start to catch up with listings, indicating a shift towards a sellers’ market in many areas.

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