As prospective homebuyers continued to benefit from increased choice in Ontario’s real estate market throughout 2025, many sellers were forced to knock off thousands of dollars (or, in some extreme cases, hundreds of thousands of dollars) just to get their property sold.
A recent example involves a four-bedroom, three-bathroom home in Kingston, which originally sold for $1.35 million back in July 2022, when home prices reached their peak in most major markets throughout the province, thanks to cheap borrowing rates and skyrocketing demand.
According to the home’s sale history, which was circulated on social media this week, attempts to lease out the property fell through, and ultimately, it was put back on the market as a power of sale for $739,000 in November.
After two months, the home finally sold for its exact listing price, representing a loss of $611,000 when compared to its price just a few years earlier.
A power of sale, which differs from a traditional home sale, is a clause that’s written into a mortgage note that permits the mortgagee to sell their property in the event of default to repay the mortgage debt. Under this scenario, the lender forces a sale and receives the funds owed to them, while the current owner gets to keep the excess profit.
The Toronto Regional Real Estate Board (TRREB) notes in its latest report that home sales declined in 2025 compared to the year before, as “economic uncertainty weighed on consumer confidence” despite elevated inventory levels.
Greater options meant buyers were able to negotiate prices downward, which helped to improve affordability in the region.
Overall, the annual average selling price last year was $1,067,968, representing a decline of 4.7 per cent when compared to the average selling price of $1,120,241 in 2024. Home sales also declined — exactly 3,697 home sales were reported in December, representing a decline of 8.9 per cent compared to December 2024.
“Reaffirmed trade relationships and large-scale domestic economic development projects will be key for improved home sales moving forward. GTA households must be confident in their employment situation before committing to long-term monthly mortgage payments, even in this more affordable market,” said TRREB Chief Information Officer Jason Mercer.
“We urge governments at all levels to take action now to provide tax relief for consumers and help ease the rising cost of living. Families and individuals need financial breathing room so they can afford a home or apartment and meet their basic needs,” TRREB CEO John DiMichele added.
“Fair and responsible tax policies can put more money back into people’s pockets, restore consumer confidence, and rebuild trust in the economy.”
