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Toronto home prices soar to record levels

The average price of a detached home in Toronto is now nearing 1 million dollars

It sounds shocking, but the average price of a detached home in Toronto is now approaching one million dollars.

The Toronto Real Estate Board says the average price of a detached home in the city rose by 13% in the last year, ending in April.

It's now going to cost you more than 960 thousand dollars to jump into the market of detached homes.

If you're looking for a semi-detached, the news isn't much better, with the average price now north of 700 thousand dollars.

Jason Mercer from the Toronto Real Estate Board says the reason is simple: Supply and demand.

He says there's simply not enough houses for sale in the city, and for those that are, the prices are being driven up.

"More competition between buyers equals strong price growth." said Mercer.

So why are there fewer houses on the market?

One reason could be the second land transfer tax home buyers have to pay within the city limits in Toronto.

Mercer says with the new average price of a detached house in Toronto selling for 960 thousand dollars, the combined land transfer tax in Toronto would work out to be more than 30 thousand dollars.

"I mean that's a large sum of money up front when you're closing, that could be used to upgrade the home that you're in right now."

That's why, Mercer says, people are choosing to spruce up their current home, rather than move into something new.

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  1. contiki posted on 05/06/2014 05:49 PM
    How about reducing the commission that the real estate agents charge. Charging 4 to 6 % for very little work is outrageous. A 4% fee on the $960k house is almost more than $38k.
  2. Mark posted on 05/06/2014 08:00 PM
    Another fine example of a free (for all) enterprise system. Isn't shelter a basic human necessity? Housing market prices should be tightly regulated through the government. Who the hell can afford a million dollars for a house in the city!!!
    What a joke...
    1. Keith posted on 05/06/2014 11:31 PM
      @Mark Sorry, but we live in a free enterprise system. There aren't and shouldn't be guarantees that say I can live in the most expensive part of metro Toronto. If I can't afford to live right in Toronto then I live further away. Government interfering in the housing market is the problem not the solution. Just look at what rent controls brought us. We have well qualified professionals living in rent controlled apartments and houses, because Landlords will obviously choose the best qualified persons to occupy their rent controlled units, rather than rent to the disadvantaged.
    2. Karl posted on 05/07/2014 07:17 AM
      @Keith Would rent control matter, then? If I owned a building, of course I would want the "best qualified" persons, pending a background check. That is not a best illustration of "government interference" on the market.
  3. Omon posted on 05/06/2014 10:17 PM
    This is crazy! who ever would've thought the price for a home in Toronto would be 1 million dollars. I better be getting my raise soon, then again I will need more than a little raise.
  4. Ernie posted on 05/06/2014 10:29 PM
    Million dollar homes ... traffic congestion ... could there be a link?
  5. Greg posted on 05/20/2014 10:33 AM
    This tax is absolutely criminal. Why should a person buying a home in Toronto have to pay two identical land transfer taxes?. Shame on the city of Toronto and the spineless City Council who supports this tax. We need a good old fashioned tax revolt that might do the the job. I will be supporting the Toronto Land Transfer Tax Coalition candidate in my ward who opposes the land transfer tax and wants it phased out. Good candidates, good cause. Let's get rid of this unfair tax once and for all.
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