What is a Luxury Home? - Bosley Real Estate Ltd. Brokerage - Homes and houses for sale in Toronto including Cabbagetown, The Annex, Danforth Village, Lawrence Park and Riverdale

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08 April 2019
Bosley Real Estate

What is a Luxury Home?

What is a Luxury Home?

The word luxury brings to mind great comfort and extravagant pleasures. While it may be a cinch to understand what makes a luxury vacation, hotel, or handbag, when it comes to defining the Toronto luxury real estate market, it’s not as simple or straightforward.

What Makes Things Complicated

With housing prices soaring, the heightened state of Toronto’s housing market remains a hot topic. Overall, the Toronto market is witnessing average purchase prices increasing. According to the Toronto Real Estate Board (TREB), the average detached home sale is $1.35 million. So with the million-dollar home club not as exclusive as it once was, it is difficult to include purchase price as the ultimate defining characteristic of Toronto luxury homes. If not price, then what can define the luxury house market? Curb appeal? Custom finishings? Countless bathrooms? Smart technology? Location, location, location?

Close. In our opinion, in 2019, categorizing a luxury home comes down to two factors:

  1. Cost criteria
  2. Home Features

Cost Criteria

There are many published reports showcasing what $1 million gets you across various Canadian cities. (And yes - you’re right in your assumption that $1 million goes much further in just about any city not named Toronto or Vancouver) While $1 million might get you into the Toronto market with a complete gut remodel, it could get you the house of your dreams elsewhere. Take away the postal codes, and you’ll be reminded that million dollar homes are not all created equal.

Toronto home sales of $2 million-plus accounted for just 2% of the total number of February 2019 sales according to the Toronto Real Estate Board. Keep in mind there are many cities wherein $2 million home sales may exist just a handful of times per year, if at all.

All this to say - the monetary value itself may not be helpful in distinguishing luxury real estate but looking at the top 2% of sales can. It is a much more accurate indicator of where mid-range ends and luxury begins in individual markets.

Home Features

There is no shortage of homes for sale in Toronto that might seem perfect on paper – they are in great locations, feature spa-like backyards, and have plenty of square footage. Look into these homes a bit further and, while they come with a hefty price tag, they may not be up to par with today’s standards for things such as style and technology.

Once the norm, segregated kitchens and living rooms have been swapped for open floor plans which are much more suited to entertaining. Top-of-line appliances have been replaced for those with smarter technology. Depending on how well kept or recently renovated an older home is, it may be lacking some of these luxury features.

New construction, on the other hand, can be more up-to-date with home design trends and technology but may be smaller in size or in less desirable locations. While brand new features fall into the category of extravagant living, thereby defining the home itself as luxury, this further complicates how we define luxury in the home.

Is My Home a Luxury Home?

The definition of a luxury home truly falls onto the potential homeowner and seller. It will frame how the house is marketed when it is listed and how an audience will filter through listings when looking to buy. What may be a luxury to one person is a feature that someone else doesn’t want to pay for. Working closely with your real estate representative and brokerage will help you to prioritize your needs and wants. Hopefully, whether it fits the definition we’ve laid out above (or not) you will be able to get everything you want.

Have you listed or purchased a luxury home? Tell us how you came to this decision!