Article content

Toronto realtor Sammy Kohn recalls what it was like representing buyers during the housing frenzy of 2021 and early 2022.

Sign In or Create an Account

or View more offersArticle content

It was not uncommon, he said, to be on the way to a property only to get a call from the listing agent saying it had already sold.

Article contentWe apologize, but this video has failed to load.Try refreshing your browser, or
tap here to see other videos from our team.We apologize, but this video has failed to load.Try refreshing your browser, or
tap here to see other videos from our team.Article content

“I would quite literally be so frantic to get to showings,” he said. “That’s not sustainable.”

Article content

Four years later, some of the buyers who prevailed in that market are finding out just how costly a reversal can be.

Article content

Story continues below

This advertisement has not loaded yet, but your article continues below.

Article content

Eight in 10 Toronto-area homes that were purchased in the last three to five years and resold in the first seven months of 2026 changed hands for less than their owners originally paid, according to data prepared by real estate listing website HouseSigma. The median loss was $130,000, or 13.54 per cent.

Article contentArticle content

That’s dramatically different from what similarly situated sellers experienced over most of the past decade.

Article content

HouseSigma compared Toronto-area homes resold in the first seven months (January to July) of each year from 2016 to 2026 after being held for three to five years. In the years 2016 through 2024, less than four per cent sold below their previous purchase price. The share jumped to 34.6 per cent in 2025 and climbed to 80.2 per cent this year.

Article content

The reversal from 2022 is particularly stark. In the first seven months of that year, 99.79 per cent of homes matching that criteria fetched more than their previous purchase price. The median gain was $365,000, or nearly 61 per cent –– the largest median dollar gain in the 11-year period.

Article content

This year, just 19.21 per cent of comparable resales have sold for more than their previous purchase price. Among those that did, the median gain was $89,694 or 8.2 per cent.

Article content

Story continues below

This advertisement has not loaded yet, but your article continues below.

Article content

For those who bought in 2022 and listed their homes this year, the picture is even more striking. Of the 989 properties purchased in 2022 and resold through July, 820, or 82.9 per cent, went for less than their previous purchase price. The median loss was $175,000 or 16.92 per cent. No other purchase year had a higher share of loss-making resales or deeper median percentage losses.

Article contentRead More

  1. Are Ontario’s homebuyer rebates reviving demand? Yes, but not where you’d expect
  2. Garry Marr: It’s time to get rid of the foreign buyers ban on housing, but don’t expect it to save the market
  3. Story continues belowThis advertisement has not loaded yet, but your article continues below.

Article content

Kohn said exceptionally low borrowing costs, limited inventory and fierce competition among buyers propelled the market four years ago. Prices have since corrected, but some sellers remain anchored to what they paid under very different conditions.

Article content

“Those conversations require realism and a lot of empathy,” Kohn said. “It’s very difficult for an owner to accept that this market, if they bought in 2021 through 2023, will likely not support the price they paid.”

Article content

Much of the discussion around selling at a loss has centred on the struggling condo market, but HouseSigma’s data shows the losses extend across housing types.

Article content

A semi-detached home on Conarty Cres. in Whitby purchased for $1.29 million in February 2022 sold for $875,000 in July, a $415,000 loss. A Milton townhouse purchased for $1.125 million in January 2022 sold for $767,000 in July, a decline of $358,100.