A $1-million price tag on a home no longer means living in luxury
A million dollars no longer buys luxury in Canada’s largest cities.
Rather, a new report notes that $1 million is increasingly the average price for homes in Toronto and Vancouver, and it could soon be in Calgary, too, given the resale real estate market’s current trajectory, note local realtors.
“In the next three to five years, there is potential for that kind of increase with the economy staying strong, high migration and inventory remaining low,” says Doug Cabral, realtor with Royal Lepage Benchmark.
Royal Lepage Canada released a study late last month on what $1 million purchases across Canada, finding Edmonton offers the biggest bang for buyers’ bucks.
Edmonton homes offer the largest square footage for a $1-million home, an average of 2,675 square feet with three bedrooms and three bathrooms.
In Calgary, $1 million buys a home with about 2,179 square feet of floor space, likely with three bedrooms and three bathrooms. The report used data from December, revealing that in cities like Vancouver, $1 million buys a home of 900 square feet, two bedrooms and two bathrooms. In Toronto, the sum buys a 1,218-sq.ft home with three bedrooms and two bathrooms.
That differential has prompted some people to move to Calgary, selling their homes in larger cities, and “coming here with big pockets,” finding their dollars buy them much more home, Cabral says.
The current benchmark price for a Calgary home — across all types — is about $572,500, up about 10 per cent year over year.
For single-family detached homes, the benchmark is about $702,200, an increase of about 13 per cent, Calgary Real Estate Board statistics show.
The benchmark figure excludes the lowest and highest priced homes on the market to determine the typical price. While up more than 20 per cent since 2022 for single-family detached homes in Calgary, the benchmark for all housing types in the Greater Toronto Area, in contrast, was a little more than $1 million in January, according to Canadian Real Estate Association data. For a single-family detached home, the benchmark is more than $1.2 million, and CREA numbers further show that in Vancouver a single-family detached home costs more than $1.9 million.
Although the recent Royal Lepage study showcased Calgary’s relative affordability, it is catching up with larger markets.
“We’re starting to see that appreciation that we’ve seen in other cities,” says Mark Neustaedter, associate realtor with EXP Realty, noting many homes in sought-after communities are reaching $1 million or more.
“Mahogany, one of the most desirable, is a great example.” He adds that homes there listed for $650,000 three years ago are more likely listing closer to $900,000 today, and homes on the water can easily exceed $2 million. One recent single-family home for sale on Mahogany Bay, for example, has listed at nearly $2.6 million. The 3,316-sq.-ft floor plan offers four bedrooms and four bathrooms.
That’s still far better than Vancouver, where a single-family home with similar square footage has listed for nearly $4.4 million.
As well, activity in the $1-million price range, while brisk, still makes up a small segment of Calgary resales, Neustaedter notes
“As you move down to $600,000 and under, there’s much more demand.”
Yet, current migration levels and a strong economy are setting the table for more price growth, particularly as the supply of homes remains limited.
In turn, it’s not inconceivable that the benchmark single-family home price could reach $1 million within a few years — at which point out-of-town buyers may no longer see the value in Calgary they do today, Neustaedter adds.