Averages are pushing higher and higher year after year. The national selling average was placed at $500,000 in May this year. That hardly reflects prices in Vancouver and Toronto, and pales in comparison with the past figures recorded for the two cities.
Back in 2014, average prices of detached homes in Toronto approached $900,000. For Vancouver, it was $1 million. These prices prompted housing experts to say that a $1.5-million home bought in Toronto could hardly pass for a luxury property. The same goes for a $2-million house bought in Vancouver.
Experts settled with the following values for 2016. Houses valued at 1.8 million in Greater Toronto were considered luxury. In the region of Vancouver, the threshold price set was 3.6 million. Prices are placed even higher in posh residential neighborhoods that are within city limits.
There are several factors at play why luxury prices are going up in these areas. These cities are the two largest housing markets in Canada. Next, optimism about the future is high among the residents. Third, unemployment rate is low. Also, interest rates are stable and low.