Ontario Home Sells at $600,000+ Loss as Buyers Gain Upper Hand in 2025 Housing Market

Ontario’s housing market in 2025 increasingly favoured buyers, as elevated inventory and economic uncertainty forced many sellers to accept steep price reductions just to close a deal. In some cases, those reductions reached hundreds of thousands of dollars.

One striking example emerged this week from Kingston, where a four-bedroom, three-bathroom detached home ultimately sold at a loss of more than $600,000, underscoring how dramatically conditions have shifted since the pandemic-era peak.

From Market Peak to Forced Sale

According to the property’s sales history circulated on social media, the home last changed hands in July 2022 for $1.35 million. At the time, Ontario’s housing market was near its peak, driven by ultra-low borrowing costs and intense demand across most major markets.

As conditions tightened, the owner reportedly attempted to lease the property, but those efforts were unsuccessful. In November 2025, the home was re-listed as a power of sale at $739,000.

After two months on the market, the property sold for its full asking price. While the transaction closed successfully, the final result represented a $611,000 loss compared with its 2022 purchase price.

What a Power of Sale Means

A power of sale differs from a typical residential transaction. It is a clause written into a mortgage agreement that allows the lender to sell the property if the borrower defaults on their loan obligations.

In these cases, the lender initiates the sale to recover the outstanding mortgage balance. Any remaining proceeds, after the debt and associated costs are paid, go back to the homeowner. Power-of-sale listings often signal financial stress and can add downward pressure on prices, particularly in already soft markets.

Broader Market Trends Point to Softer Prices

This Kingston sale aligns with broader provincial and regional trends. In its latest report, the Toronto Regional Real Estate Board noted that home sales declined in 2025 compared with the previous year, citing economic uncertainty as a key factor weighing on consumer confidence.

At the same time, elevated inventory levels gave buyers more choice, allowing them to negotiate prices downward and modestly improve affordability.

Across Ontario, the average selling price in 2025 was $1,067,968, down 4.7% from $1,120,241 in 2024. Sales volumes also weakened. In December 2025, 3,697 homes changed hands, an 8.9% decline compared with December 2024.

Confidence, Not Just Prices, Remains the Key Issue

TRREB Chief Information Officer Jason Mercer said that a sustained recovery in housing activity will depend on broader economic conditions, not just lower prices.

“Reaffirmed trade relationships and large-scale domestic economic development projects will be key for improved home sales moving forward,” Mercer said, adding that households must feel confident in their employment situation before committing to long-term mortgage payments—even in a more affordable market.

TRREB CEO John DiMichele echoed that sentiment, calling on governments to provide tax relief to help ease cost-of-living pressures.

“Families and individuals need financial breathing room so they can afford a home or apartment and meet their basic needs,” he said, noting that fair and responsible tax policies could help restore consumer confidence and rebuild trust in the economy.

The Kingston sale may be an extreme example, but it reflects a broader reality in Ontario’s housing market: in a higher-rate, slower-growth environment, sellers no longer set the terms. Buyers do.