According to figures provided by the Canada Real Estate Board, home prices across the country rose 7% in October of this year versus a year ago. Corresponding MLS data for the month indicate that the average price of a home was $419,699, up from $391,931 compared to this time last year. However, this national increase in homes prices is a bit deceiving, considering the increase can be attributed to price jumps in Canada’s largest real estate markets: Toronto, Vancouver and Calgary. Toronto and Calgary each saw price increases just over 9%, while Vancouver saw a 6% increase in the past year.
Some analysts, like economist David Madani of Capital Economics (read his analysis on the Global News website), argue that such a dramatic price increase in these three markets could cause a housing crash, as prices eclipse the average annual incomes needed to support a mortgage to purchase these homes. Madani is quick to admit that in the Toronto and Vancouver markets, low interest rates on mortgages, coupled with “robust demand,” is continuing to fuel home sales in those two cities.
Increases in the price of luxury homes, affordable only to the country’s wealthiest segment of the population, is also likely contributing to the average home price increase seen nationwide. Some of the most expensive mansions and condos in Canada are being sold at obscene prices, causing the overall average price to be skewed because of the existence of these outliers.
The award for Most Expensive Home in Canada actually belongs to Calgary, according to a recent article by The Huffington Post. It is not surprising that the top three most expensive homes would come from each of the Big Three cities. The 242-acre property located in the Rocky Mountain foothills on the outskirts of Calgary (shown above), contains two houses, a covered bridge and a vintage gas station, and will run you just shy of $38 Million. Coming in at number two is a 2-acre plot on Toronto’s Bridle Path, which contains a 10 bedroom, 15 bathroom mansion that is valued at just under $29 Million. And to round out the top three is a 1.2-acre plot overlooking the British Columbia coastline, an area known as Point Grey. The house that currently sits on the property is considered by many realtors to be in horrible, shabby condition, but the land it sits on is apparently worth just under $26 Million.
It’s important to note that the Huffington Post list did not account for condos for sale in Canada, with a few notable units being sold for extravagant prices. The asking price for one Trump Toronto’s most expensive penthouse suites costs an estimated $33 Million, with Tony Wong of The Toronto Star, calling it “the most expensive concrete box in Canada.” The three floor unit sits on the 58th floor, has three storeys and a panoramic view of the city, a total of 11,755 square feet of space. The unit is still currently under construction, making the possibility of a price increase all the more likely.