A few days ago, a reader who is currently living in England emailed me.  He might be moving to Toronto in the near future and was curious about my thoughts on all the price drops.

Was it a market correction or were all these price drops due to houses being priced too high to begin with?

For the most part, and especially for many houses over $2.5 million, I told him that most price drops were due to high pricing, not a correction.

This house is probably one of the best examples!

It is a 4 bedroom, 5 bathroom flip that cost less than $1,000,000 to purchase in 2010.  It is on a very busy part of Glen Road, it is on a really odd shaped 80 x 49.3 foot lot, and there is basically no yard.

It was listed last October for...

$3,280,000!!!!

My reaction...?

They were and it sat at that price until February when they dropped the price to $2,990,000.

It still didn't sell and they dropped the price in May to $2,780,000.

Then again a few weeks later to $2,685,000.

No sale and by September, there was a new agent and a new price...

To $2,395,000.

This is not a $2.4 house by any means.

So........the price has been dropped again.  To $1,899,000 you ask!?!

Nope.

$2,295,000.

Are they serious?

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