A ravenous demand for luxury homes means that a million-dollar house has no status at all in the more exclusive neighbourhoods of Canada's largest cities, a survey finds.

Michael Polzler, executive vice president and regional director for RE/MAX Ontario-Atlantic Canada, said the reasons behind the high demand are simple.

"A strong economy, combined with low interest rates and confidence our economy will continue to do well," he told CTV News.

The most expensive house in the nation is a 16,000-square-foot mansion in Victoria, complete with ocean views, seven bedrooms, a large back-up generator and even an elevator.

The price tag is $26 million.

"The only thing that surprises me these days is that people have so much money to spend, and younger and younger people seem to have money," said luxury homeowner Ceri Howell.

RE/MAX released details of its survey Wednesday on the company's website.

"Unabated demand throughout the year has created tight market conditions in a number of blue-chip neighbourhoods. Limited availability of product has, in turn, placed mounting pressure on housing values," Polzler said in a press release.

"As a result, the million-dollar home no longer holds the same cachet it once did and in larger markets such as Vancouver, Calgary, and Toronto. It's simply a starting price."

Across Canada, the firm found that luxury home sales are up over last year in 16 markets.

The increase ranged from 13 per cent in Victoria to 521 per cent in Edmonton; but Saskatoon, Regina and Ottawa also reported triple-digit increases.

"Strong economic performance, especially in Western Canadian provinces, has bolstered consumer confidence levels to such a degree that purchasers in the upper end are comfortable with a million-dollar-plus investment in real estate," said Elton Ash, regional executive vice president for RE/MAX in Western Canada.

"Recent volatility in the stock market may trigger further investment in real estate as purchasers move to reallocate their holdings."

While the North American stock markets have seen some rocky times in recent weeks, they have provided solid returns in recent years.

"Growth in market capitalization has generated tremendous wealth in recent years -- in fact, both the Dow Jones and S& P 500 reported double-digit growth in 2006," Polzler said.

"Demand for luxury goods overall -- upscale homes, fine art, collectable cars -- is outpacing demand for everyday consumables. Inheritance has played a significant role as well, with the download on an estimated $1 trillion amount already underway."

The report also credits solid gains in housing values and the capital gains exemption for a principal residence for driving sales.

While out-of-province and international buyers are driving some of the buying, local purchasers still account for the majority of sales.

New "benchmark" sales continue to occur, such as one Toronto home priced at almost $16 million.

While Regina has yet to report a $1-million home sale, "the day is nearing," the release said.

Retirees and empty-nesters are also pushing up prices for luxury condos. One Vancouver condo sold for $5 million, while one unit in the same complex is priced at $18.2 million.

With a report by CTV's John Vennavally-Rao