Although the average selling price for homes in the GTA continued to edge upward through the first quarter of 2024, a home sold well below its listing price near Caledon last month demonstrates how unpredictable prices in the region tend to be. 

The one-storey residence, located at 9918 Old Church Rd., sprawls across 2.93 acres and includes a 700-square-foot extension, 14-foot high ceilings, a gourmet kitchen, a walkout basement, a wine cellar, and a secluded pond.

The lavish property was originally sold for a staggering $2.56 million in April 2022. Over the next few months, the home was listed and re-listed at consistently declining price points. 

In October 2023, the home was listed twice, once for $2,599,999, and then $2,349,000 just over a week later. In January 2024, the property knocked several hundred thousand dollars off of its price tag and was re-listed for $1,970,000. 

KABLAM🔥

Ontario luxury home owner loses $560,000 in 2 years.

One of Ontario's largest $ residential losses ever recorded. pic.twitter.com/qQ3G7MeszS

— Tablesalt 🇨🇦🇺🇸 (@Tablesalt13) April 3, 2024

Eleven days later, the home was re-listed at $2,225,000. After sitting on the market for approximately a month, the home was re-listed for $2,198,888 in February 2024 and sold in March for $2 million flat — exactly $560,000 less than it sold for just two years earlier. 

This property isn't the only Ontario home to be sold at a significant loss in 2024. Last month, a home in Burlington's affluent LaSalle neighbourhood was sold for $700,000 less than it was originally purchased for just two years earlier. 

Despite these cases, a Toronto Regional Real Estate Board (TRREB) report released on Wednesday reveals that tighter market conditions in the region will push selling prices higher. 

"We have seen a gradual improvement in market conditions over the past quarter. More buyers have adjusted to the higher interest rate environment. At the same time, homeowners may be anticipating an improvement in market conditions in the spring, which helps explain the marked increase in new listings so far this year," said TRREB President Jennifer Pearce.

According to the report, the MLS Home Price Index composite benchmark was up 0.3 per cent year-over-year, with the average selling price increasing by 1.3 per cent to $1,121,615. 

"The average selling price edged up in comparison to last year as we moved through the first quarter of 2024. Price growth is expected to accelerate during the spring and even more so in the second half of the year, as sales growth catches up with listings growth and sellers' market conditions start to emerge in many neighbourhoods," said TRREB Chief Market Analyst Jason Mercer.

"Lower borrowing costs in the months ahead will help fuel increased demand for ownership housing."