How many square feet for $1 million?

What kind of property do you get for $1 million? A report released this Thursday by the real estate agency Royal LePage confirms the enviable position of Montreal, compared to other major Canadian cities.

An average of 3.8 bedrooms, 2.4 bathrooms and 2,226 square feet of living space: this is what a buyer in the Greater Montreal area could hope to obtain in December 2023, with a budget ranging from $950,000 to $1,050,000. That’s 466 square feet more than the Canadian average. Please note that Greater Montreal corresponds to the metropolitan region and includes in particular the cities of Laval, Terrebonne, Longueuil and Saint-Jean-sur-Richelieu.

Unsurprisingly, on the island of Montreal, buyers must reduce their ambitions. At the same period, a residence located in the territory of the City of Montreal and sold between $950,000 and $1,050,000 had on average 4 bedrooms, 2.4 bathrooms and 2,093 square feet of living space. These results are similar to those revealed by Royal LePage during the same exercise, carried out in December 2022.

So, in the heart of Montreal, the $1 million property is nothing like the mansion it once was. According to Carolyn Forget, residential and commercial real estate broker at Royal LePage Urbain, such a budget makes it possible to find, on the island of Montreal, a good-sized single-family property, but not necessarily renovated and located in more remote neighborhoods.

“West of Papineau Avenue, in La Petite-Patrie, Villeray, Outremont, Ville Mont-Royal, what we will find for 1 million are homes that are little or not renovated, clean, but not up to date, she emphasizes. In Ahuntsic, we are starting to be close to a million, but we can find it. However, further east, for $800,000, there are some very nice renovated homes. »

On the other hand, the same budget, outside the island, opens up to a varied offer of more high-end and renovated properties, with swimming pool, outdoor spaces and garage.

As for buyers in Quebec, last December they could aspire to an average property of 3.8 bedrooms, 2.5 bathrooms and 2,516 square feet. This is, however, less than in Edmonton, which has the highest average surface area of ​​all the regions studied (2,675 square feet), but much more than in Vancouver where a budget of $1 million – often the starting point for first-time buyers – only allowed the purchase of a 900 square foot property.

This study is based on property valuation data provided by Toronto-based RPS Solutions for Residential Properties.

“A few years ago, in almost all markets, a budget of $1 million was enough to acquire a large property in a desirable neighborhood,” said Karen Yolevski, Chief Operating Officer, Royal LePage Real Estate Services, via email. communicated. However, over the years, we have noticed that what a million dollars can buy varies considerably from one city to another. Today, that budget might buy a luxury detached home in one location or a two-bedroom condo in another. »

Is a million dollars enough in today’s real estate market to buy a home that meets household needs? Yes, say 64% of Canadians and 80% of Quebecers according to an online survey conducted by Léger on behalf of Royal LePage from January 26 to 28. On the other hand, 22% of Canadians and only 8% of Quebecers believe that this is not enough.

A slowdown due to rising mortgage rates

While the ownership size of $1 million properties is similar from 2022 to 2023, Royal LePage reports, monthly costs have increased as mortgage rates continued to rise last year.

In Montreal, broker Carolyn Forget notes that demand for this type of property has weakened over the past year, since this segment of the market attracts, in addition to families already owners who are looking for more space, first-time buyers, young professionals .

“We saw a good slowdown throughout the first-time buyer market,” notes Carolyn Forget. I think that’s why they started moving into income properties, which is very smart. There are often also parents who are behind it. They are going to take a small pied-à-terre, a 3 and a half upstairs. »

Remember that when purchasing a home for $1 million or more, mortgage lenders require a minimum down payment of 20% of the purchase price, or at least $200,000.

“Without a significant increase in supply, particularly in cities like Toronto and Vancouver, the standard for a million-dollar property will continue to shift away from larger homes,” predicts Karen Yolevski.

Properties currently for sale in major Canadian cities