Many house hunters are waiting for a more significant price drop before they buy.Graeme Roy/The Canadian Press
Some sellers in the current Ontario real estate market are cutting their asking price to a tantalizing level. In many cases, it’s the sole tactic that will entice a buyer.
The challenge for homeowners with languishing properties is that most buyers are not willing to test a seller’s resolve, says Matthew Regan, broker with Re/Max Escarpment Realty.
“Today, if a house is priced one dollar too high, it might as well be $1-million too high in terms of a buyer making an offer on it,” he says.
Mr. Regan is seeing “days on market” pile up for many properties for sale in Oakville, Mississauga and Burlington, where he does much of his business. One transaction typically sets off a chain reaction, but for now, volume is low.
“Until something in the market tips over the first domino, we’re going to be stagnant for a while,” he says.
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In Mr. Regan’s opinion, that first domino is “seller expectations,” which are still too high. In other words, some homeowners are hoping for a price that is unrealistic in the current market.
House hunters are circulating, he says, but many are waiting for a more significant drop in prices.
He points to three recent sales that illustrate that buyers often pounce quickly after a price cut.
Regan Irish Associates listed a three-bedroom backsplit at 2365 Devon Rd. in Oakville in the spring with an asking price of $1,549,999, then lowered the price a couple of times during the 167 days the property was on the market.
The house sold for $1,370,000 nine days after the asking price reached $1,439,000.
At 82 Brant St., a three-bedroom semi-detached near Oakville’s waterfront and marina was listed in the spring for $2,399,000. The price was trimmed to $1,999,999 in September and the property sold 10 days later for $1,850,000.
In total, the home sat for 173 days.
Also in Oakville, a three-bedroom house with a backyard pool, hot tub and putting green was listed in early 2025 with an asking price of $4.95-million. Over time, the agents reduced the price of the home at 161 Dianne Ave. until it reached $4.15-million. The property sold in September for $3.7-million.
Mr. Regan adds that one other property had a lengthy stay on market but that homeowner resisted advice to cut the asking price. That seller continues to wait for an offer, he says.
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Mr. Regan recently made an investment of his own when a traditional cottage in Old Oakville he listed with business partner Alex Irish remained on the market for two years.
The agents listed the three-bedroom house at 21 Second St. with an asking price of $6.5-million because of its rare setting on the shore of Lake Ontario.
Eventually the seller agreed to cut the price to just under $5-million but still the home sat. Even after 150 showings, no buyer was willing to take on the significant renovation the house needs, he says.
“It was distressed. It hadn’t seen an offer,” he says. “The feedback kept coming back the same.”
He mused to Ms. Irish that the home was approaching a level where he would be willing to buy it himself.
Mr. Regan and Ms. Irish teamed up to purchase a three-bedroom house on the shore of Lake Ontario for $4.2-million, down from an asking price of $6.5-million.RE/MAX ESCARPMENT REALTY INC.
The two teamed up and purchased the waterfront property for $4.2-million.
“It was a lesson. The seller had to get to a good price,” he says. “All parties had to be willing to take the risk.”
For the seller, there was the possibility that a better offer may come along, he says. And for Mr. Regan and Ms. Irish, they were giving up the chance to possibly secure a better deal later.
The pair are planning to revamp the house to appeal to downsizing buyers from the surrounding area.
“I’m up to the challenge of renovating if the price makes sense,” he says.
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Active listings in Toronto and the surrounding area remained extremely high in October on a historical basis, says Alexandra Ducharme, senior economist with National Bank of Canada.
The average price in the Greater Toronto Area (GTA) stood at $1,054,372 in October, which marks a 7.2 per cent drop from the same month last year.
Sales in the GTA fell 9.5 per cent last month from October, 2024.
Active listings increased by 17.2 per cent in October compared with the same month last year as “days on market” stretch.
According to Ms. Ducharme, sales dipped 2 per cent in the GTA last month from September’s tally on a seasonally adjusted basis.
The impact of lower interest rates appears to be offset by a significant deterioration in the labour market, she says.
Similar trends can be seen in Peel and Oakville, says Mr. Regan, who does not see a trigger for the strong price rebound many sellers are holding out for.
Broaching the subject of a price reduction with a reluctant homeowner requires some diplomacy.
If a property has been sitting, Mr. Regan gathers examples of comparable properties that have sold and bases his recommendation on the data.
“We’ve been on the market long enough to have more information,” he advises the homeowners. “Others have sold, and we haven’t even had an offer.”
Many sellers, he says, were hopeful that the Bank of Canada’s two interest rate cuts this fall would galvanize buyers and ignite prices.
The central bank’s policy-setting committee trimmed 25 basis points from the benchmark rate in September, and again in October, to bring the rate to 2.25 per cent.
“I think a lot of sellers were hanging their hat on a better market after rates went down.”
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Mr. Regan says a property with a realistic asking price will sell. In some cases, sellers are fetching multiple offers.
His clients recently bid on a renovated townhouse around the $1.2-million mark but were not successful after five rival offers landed. But such outcomes vary by neighbourhood and price point, he says.
“You can’t just price low and expect multiples,” he says.
In his conversations with sellers, he points out that they may sell for 10 per cent less than they expected, but they will be able to purchase their next property at a similar or even larger discount.
Mr. Regan says some of the sellers fail to grasp that the copious supply in most markets is outweighing buyer demand.
While some sellers see the current downturn as a blip, he believes the market is in a correction and it will take some time to swing back.
“Prices only go up when there’s little supply and an increase in demand,” Mr. Regan says. “These things are cyclical. It can take years for prices to rebound to the expectations a seller has.”