A detached home in Brampton that's been sold three times over the past two years shows just how much home prices in the GTA can change year-over-year. 

The four-bedroom, three-bathroom home at 140 Fernforest Dr., was first sold in December 2021 for $1,485,000. According to the listing, the home boasts a two-car garage, covered porch, updated countertops, gas fireplace, and an unfinished basement with a separate entrance. 

Just a few months later, the home was put back on the market and eventually sold for $1,565,000 in April 2022, an exact $80,000 markup from its previous price. 

In October 2022, the home was leased for $3,800 per month before it was put back on the market for sale. In December 2023, the home was sold for a third time for $1,052,000 — roughly $500,000 less than its sale price just a year and a half earlier. 

📢 Brampton Blowout! 💥

📍Brampton, ON 🇨🇦

$500k loss on a "Power of Sale."

Bought in May last year for nearly $1.6M, the owner leased it out for $3800/month.

But that wasn't enough. They ran into trouble, and MCC Mortgage Holdings took over and sold it in 20 days for $500k… pic.twitter.com/cncNiCM0zQ

— Shazi (@ShaziGoalie) December 17, 2023

A power of sale, which slightly differs from a regular home sale, is a clause written into a mortgage note that authorizes the mortgagee to sell their property in the event of default in order to repay the mortgage debt. 

In this scenario, the lender forces a sale on the public market and gets all the funds owed to them, while the current owner keeps any excess profit. In a foreclosure, the lender takes ownership and also gets to keep all the profits from the sale. 

According to the Toronto Regional Real Estate Board, the average price for a home in Brampton was $999,458 in October 2023, which is 4.1 per cent down from September 2023 and 0.4 per cent down compared to October 2023.

Looking further back, the average sale price for all houses and condos in Brampton has increased 141.2 per cent when compared to October 2013.

Similar to many other houses in the GTA, the home's price has varied drastically in just a short amount of time. According to an October report from real estate agency, Zoocasa, sellers in the latter half of 2023 faced lots of challenges when listing their properties, all thanks to a decline in interest driven by a lack of affordability. 

Sad to say this, but many homeowners are going to lose equity that they never see again

— Sil (@SilAujla) December 17, 2023

The agency noted that while some homes were selling for less than their listing prices, others were sitting idle on the market for long periods of time, in cases where sellers were less willing to budge.  

However, it does appear as though some relief is on the way, as multiple forecasts for the GTA housing market are now calling for greater affordability as we inch closer to 2024. 

"It does appear relief is on the horizon. Bond yields, which underpin fixed rate mortgages, have been trending lower and an increasing number of forecasters are anticipating Bank of Canada rate cuts in the first half of 2024," TRREB wrote in its recent Market Watch report.

Toronto's housing market is set to see one of the biggest price jumps in Canada in 2024😳 https://t.co/WOAvUb5Qr0 #Toronto #TorontoRealEstate #Canada

— blogTO (@blogTO) December 14, 2023

"Home prices have adjusted from their peak in response to higher borrowing costs. This has provided some relief for buyers, from an affordability perspective," the report continues.

"As mortgage rates trend lower next year and the population continues to grow at a record pace, expect demand to increase relative to supply. This will eventually lead to renewed growth in home prices."