“It isn’t what we would consider luxury,” Fran Bennett, an agent with Sotheby’s in Toronto, tells REP. “It’s comfortable living, but it’s not what we call luxury.”
With demand that increasingly outpaces supply, especially in larger cities like Vancouver and Toronto, housing prices have been on the fritz, rising to astonishing levels. For example, the average price of a detached home in Vancouver topped $1 million in December. In Toronto, that figure is slightly lower, at $934,039.
“Once considered ‘luxury’ and therefore a more limited market segment, $1 – 2 million dollar homes are now sought after by average homebuyers seeking conventional single family homes within city limits,” Sotheby’s International wrote in its annual Top Tier Report. “Low inventory and strong demand has led to a higher percentage of homes in the $1 – 2 million range being sold above the list price in all markets in the last six months of the year.”
Indeed, that’s the cost of living in some of Canada’s more bustling cities. And that’s one trend that isn’t likely to let up in 2015.
“All signs are pointing to this market, the pace of the market will continue certainly into the spring of 2015,” Bennett says. “We don’t see any slowdown. We’re so short of properties and there’s such a demand. Buyers are moving up and down in price range. And in the City of Toronto, that’s not going to change any time soon.”
If you need even more proof that the housing market’s hot, consider this: million-dollar homes are hardly considered luxury properties in many of Canada’s larger metropolitans.