A four-bedroom, three-bath home in Kingston that sold for $1.35 million at the 2022 market peak has re-sold as a power of sale for $739,000, marking a $611,000 decline in value over roughly three years.
The property was listed as a power of sale in November after attempts to lease it fell through. It sold at the listed price after two months on the market.
The sale and its scale
The 2022 sale price reflected peak conditions driven by low borrowing costs and strong demand. Since then, higher interest rates and increased inventory in many Ontario markets have pushed buyers back toward a more negotiated market, leaving some sellers with large paper losses when they need to sell.
What a power of sale means
A power of sale is a clause in a mortgage agreement that allows the lender to sell the property if the borrower defaults, without obtaining a court order. The lender uses proceeds to repay the outstanding mortgage, and any surplus beyond the debt and costs goes to the homeowner.
In this Kingston case, the power of sale route accelerated the listing and sale process. While it secures repayment for the lender, it can produce steep losses for owners who bought or refinanced at higher prices.
Market context from TRREB
The Toronto Regional Real Estate Board reported that 2025 saw fewer home sales than the previous year, citing economic uncertainty and weaker consumer confidence despite elevated inventory. Greater choice gave buyers more leverage to negotiate prices down, which improved affordability for some buyers but pressured sellers.
TRREB reported an annual average selling price of $1,067,968 for 2025, down 4.7 per cent from $1,120,241 in 2024. In December, 3,697 home sales were reported, an 8.9 per cent decline from 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.
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. Fair and responsible tax policies can put more money back into people's pockets, restore consumer confidence, and rebuild trust in the economy.
TRREB CEO John DiMichele
What this means for homeowners
Large price swings since 2022 mean some homeowners face difficult choices if they need to sell. Those who bought at peak prices and who also face higher carrying costs may consider options other than an immediate sale, including refinancing discussions with lenders, temporary rental, or staged repairs to improve sale prospects.
- Speak with your lender early if you anticipate payment problems, to explore alternatives to power of sale.
- Get a clear, current market appraisal before setting expectations about sale price and timeline.
- Work with an agent experienced in distressed or forced-sale situations to understand realistic pricing and marketing strategies.
- Consider holding or renting the property if carrying costs are manageable and local rental demand is strong.
For buyers, the shift toward more inventory and negotiating power can improve affordability, but macroeconomic factors such as employment stability and interest rates will continue to shape purchasing decisions.
This Kingston sale illustrates how quickly market conditions can change, and why homeowners and prospective buyers should review their financing and exit plans in the current environment.
