If you want to own a house in Canada, in some markets you might need to put down more than $1 million for the property you want.
In four of Canada’s major real estate markets, Toronto, Vancouver, Calgary and Montreal, more homes sold for prices over $1 million, according to a recent report by Sotheby’s International Realty.
In 2014, there were 7,527 Toronto homes, which also include condominiums, semi-detached and detached homes, that were sold for over $1 million, which is up 38 per cent from the year before. Toronto buyers were more willing to shell out more than $1 million for detached single family homes with sales of these homes climbing by 37 per cent from 2013. More condominiums also sold for prices that were more than $1 million with 46 per cent more of these units sold than the year before.
While in Vancouver, there were 3,134 homes that sold for over $1 million, which is an increase of 25 per cent from the year before. Detached single family houses accounted for the most common type of home sold for over $1 million with sales growing by 24 per cent from 2013. More condos also sold for over $1 million with sales growth climbing by 38 per cent from the year before.
Both Montreal (21 per cent) and Calgary (16 per cent) saw a smaller rise in the year-over-year increase in the number of $1-million dollar houses sold. While Calgary was affected by a drop in oil prices in the second half of the year, it only had a small impact on the homes sold, says the report. But that could change next year if prices remain at the current lows they’re at now.
This growing trend of houses selling over $1 million will continue in Toronto and Vancouver over 2015 due to the market’s limited supply and international investor interest. If you already own a home, you’ve likely seen its value appreciated over the last few years.
With more homes going for a higher price, more Canadians are either taking on more debt to afford the home they want or they simply can’t afford one in some areas.
Your housing affordability is affected by the amount of income both you and your partner earn. Recently, a Toronto mortgage broker calculated the average salary Canadians needed to earn in order to afford a home in Canada’s major housing markets, which was published in the Toronto Star.
It should be little surprise that Vancouver residents need to earn the most ($147,023) to afford buying a home with an average cost of $819,336, which will come with monthly mortgage payments of $3,570 and monthly property tax of $251. If you’re looking for a property in Halifax, your housing costs will be much more affordable since your salary only needs to be $56,929, which is less than half the salary needed by Vancouverites. You have Halifax’s lower housing costs to thank for that with the average price of a home at $264,447, monthly mortgage payments at $1,152 and property tax at $266 per month.
If you bought a newly built property, whether as an investment or for personal use, you could qualify for an HST housing rebate. With the help of Rebate4U, put some money back into your pocket by filing a claim with the CRA. We strives to provide our clients with the most professional and quality service in obtaining rebates for their new and extensively renovated homes. We are proud to offer our clients the most personal and attentive service, and we make sure that all of our clients are 100% satisfied.