An Ontario home sold at a massive loss this month shows just how much real estate prices tend to fluctuate throughout the province, especially in the face of interest rate cuts. 

According to its listing, the three-bedroom, four-bathroom home, located in a serene neighbourhood in Kitchener, boasts nearly 4,200 square feet of living space, a modern kitchen, a luxurious primary suite, and a fully finished basement. 

The property was first sold for $1.62 million in January 2022, during a period when cheaper borrowing rates shot up demand across the province's real estate market and contributed to sky-high prices. 

Two and a half years later, the home was re-listed for just shy of $1.35 million but failed to attract any buyers. The home was put back on the market for a second time in September 2024 for just under $1.2 million and eventually sold for $1.16 million — representing a loss of $460,000 when compared to its price just two years earlier. 

📢 From "holding offers" to "holding bags" 👜

📍Kitchener, ON 🇨🇦

Kitchener detached loses $460K in 2️⃣ years. 📉

In 2022, the owner of this Kitchener detached held offers. The winning bid was $420k over asking. 💸

An apt number... 💭

The owner was just smoked with a whopping… pic.twitter.com/uKF5g1yaeT

— Shazi (@ShaziGoalie) October 11, 2024

Greater choice in the province's real estate market means that many buyers have successfully purchased homes below their listing prices over the past few months, including a four-bedroom home in London that was sold at a loss of $650,000 following four attempts to sell, as well as a custom-built home in Oshawa that sold at a staggering $800,000 loss.

According to the Canadian Real Estate Association's (CREA) latest report, national home sales edged up again following the Bank of Canada's third interest rate cut of the year, which followed a similar pattern recorded in the months following the first two rate cuts. 

"Sales gains are now three for three in the months following interest rate cuts, which is a trend even though the increases weren’t headline-grabbing," said Shaun Cathcart, CREA's Senior Economist.

"That said, with the pace of rate cuts now expected to be much faster than previously thought, it's possible some buyers may choose to hold off on a purchase for now. This could further boost the rebound expected in 2025 at the expense of the last few months of this year."

According to the report, home sales recorded over Canadian MLS systems climbed 1.9 per cent on a month-over-month basis in September 2024, reaching their highest level since July 2023, with the national increase being led by the GTA and Hamilton-Burlington. 

The MLS Home Price Index inched up 0.1 per cent month-over-month but was still down 3.3 per cent on a year-over-year basis. 

"The beginning of September saw a burst of new supply for buyers to choose from before things generally quiet down for the winter," said James Mabey, CREA Chair.

"While some buyers may choose to take advantage, others may be inclined to wait as the bulk of future rate cuts from the Bank of Canada are now expected to show up in a matter of months as opposed to years."