What will $500,000 get you in today's real estate market?

You can still buy your dream home in Canada for $500,000, as long as you're willing to compromise on dwelling type and location. You'll get more for your $500,000 in some areas of the country than in others.

Leah Coss, a mortgage planner in Vancouver, says, "You cannot even buy a used house in Vancouver for $500,000, let alone a brand new one." This means that even with the tax rebate (that's the HST tax rebate for homes that cost less than $525,000), a new home will cost you and other home buyers more money, once the HST tax comes into effect this summer. "I predict that new home developments for single-family homes that are in the $600,000-$700,000 zone will slow down, and most will revert back to just building more affordable townhomes and condos."

CMHC predicts that home prices will steadily increase until 2011, making it more difficult to afford a dream home for less than $500,000.

Here's a quick look at what's currently available across Canada for roughly $500,000.

Vancouver, British Columbia

In Vancouver, the average house price in April 2010 was $673,579, according to CREA MLS statistics. Unless your financing covers $600,000 to $700,000, you as the buyer will have to step out of the downtown Vancouver corridor to find a single-dwelling used home in an affordable price range.

If your heart is set on a single dwelling, $500,000 can buy you a fixer-upper, two-level detached house in a less austere part of Vancouver; with 1,300 square feet, four bedrooms and an unfinished basement.

Calgary, Alberta

You'll find more luxury features and more square footage at the $500,000 (or less!) price point in Calgary than you will in Vancouver. For example, you can purchase a newly built riverfront condominium in Calgary's East Village for a mere $469,000. Expect luxury items such as granite countertops, stainless-steel appliances, full bathrooms with a soaker tub, and upgraded floor and door trims.

Winnipeg, Manitoba

Home buyers will be hard-pressed to even find a house for as high as $500,000 in this part of the country, unless they're looking for vast acreage on farmland. A mere $399,900 can get you a quaint two-level heritage home in the Norwood Flats area. Here you'll get more than 1,750 square feet, three bedrooms, two bathrooms and a vast array of upgrades including hardwood and tiled floors, granite countertops, stainless-steel appliances, a claw-foot tub and even a gazebo.

Toronto, Ontario

If you have $500,000 and want to purchase a property in Toronto, you'll get the most comfort and amenities for your money by purchasing a high-rise condominium. You can find a downtown two-bedroom, two-bathroom unit with spacious balconies and lake and city views in the downtown area; maintenance fees vary, but many buildings offer a gym, pool and concierge, among other features.

Halifax, Nova Scotia

The picturesque city of Halifax has an average house price below $250,000, making it an affordable option for Canadian home buyers. For less than $500,000, you can get a custom-designed home on two acres with 2,800 square feet of living space, four bedrooms, walk-in closets, Jacuzzi tubs, hardwood staircase and floors, and a basement with an unfinished space that would make an ideal media room or fifth bedroom.

Sources:
https://www03.cmhc-schl.gc.ca/catalog/productDetail.cfm?csid=1&cat=63&itm=1〈=en&fr=1274235873937
http://www.realtylink.org/
http://docs.google.com/viewer?a=v&q=cache:pjx0crc4sbAJ:www.rbc.com/economics/market/pdf/house.pdf+housing+market+trends&hl=en&gl=ca&pid=bl&srcid=ADGEESi626cXfneO4Ir2XFpYgcsN1JfaborgddyKJgUCs1xrsdT5WlHtS7a82gaH5vQEAeqvFkeoMN5ew95sRBhoBSCC6B7WD6TY3sZVoGFAzh-IYFRy_CS3Gx8owseua1eO6BZqn0J9&sig=AHIEtbTETYnhtJzVBPA95D8Yfje_x2MkQQ