$1 million ain’t what it used to be
What will a cool $1 million buy you across the country?
Obviously, that depends on the market; but increasingly, what was once considered the threshold for a luxury home will buy you less and less house.
“What used to be considered a luxury price point is now the status quo in Canada’s two hottest markets,” Dianne Usher, senior vice president of Johnston and Daniel, a division of Royal LePage, said. “Once carrying significant purchasing power, $1 million is now either below or on par with the price of an average two-storey home in Toronto and Greater Vancouver. Now, instead of a fully upgraded three bedroom, three bathroom two-storey property in prestigious neighbourhoods like Rosedale or West Vancouver, you’re getting a much smaller two or three bedroom, two bathroom property in need of renovation in a less sought-after location.”
Royal LePage released the report, From luxury lodging to starter home: What $1 million can buy across Canada, Monday morning.
It found that, overall, million-dollar homes are shrinking.
The average million-dollar home in 2007 was 3.9 bedrooms, 3.3 bedrooms and offered 2,860 square feet of living space.
Fast-forward to 2017, and the average home has shrunk.
That, obviously, holds true for homes in major markets.
“There are striking differences in the options available for those who are looking to purchase a $1 million two-storey home in Canada,” Usher said. “From an older starter home in Vancouver to a waterfront property with all of the bells and whistles in Halifax, the amount of value and space that prospective buyers receive is largely dependent on the characteristics of the market in which they are located.”
“However, significant value can still be found in the suburbs or city-centres like Saskatoon and Montreal, where homes are more affordable, landing you substantially more home with better features as a result.”