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Toronto Home Selling for $500K Less After Multiple Failed Attempts

Despite a brief increase in activity last spring, Toronto’s real estate market continues to favor buyers, leading some homeowners to reduce their asking prices significantly. One notable example is a luxurious property in Etobicoke, which has been re-listed with a considerable price cut following several unsuccessful attempts to sell.

This 6,600-square-foot mansion, featuring amenities such as floor-to-ceiling windows, a temperature-controlled wine cellar, an in-ground pool and spa with a waterfall, cabanas, a theatre room, and ravine views, was initially purchased for $6.7 million in February. It was first re-listed for $6.99 million but failed to attract buyers. Subsequent listings at $6.9 million and later $6.5 million also did not succeed. Finally, in June 2024, the price was reduced to $6.2 million, which is $500,000 less than its original purchase price in 2021.

This trend of significant price reductions isn’t isolated. Earlier this year, a property in Burlington’s LaSalle neighborhood sold for $700,000 less than its purchase price from two years prior. Similarly, a large home in North York’s St. Andrew-Windfields area cut $2.5 million from its asking price after two failed sales attempts.

The Toronto Regional Real Estate Board (TRREB) reported that home sales in the region were down 21.7% in May 2024 compared to the same month in 2023, with 7,013 sales recorded. However, new listings increased by 21.1%, totaling 18,612. TRREB predicts that as borrowing costs decrease, more buyers, particularly first-time buyers, will enter the market, potentially increasing competition and driving up prices.

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