If you are one of the many people who are considering buying a new property this year, you probably have a lot of questions about current market conditions. For those interested in moving into Metro Toronto (downtown) or the Greater Toronto Area (suburban areas surrounding the city), you are probably curious about the difference in listing prices between the different areas. Here is an overview to help you get familiarized with what to expect or pursue.

Currently, the average home in downtown Toronto costs $426,000. This amount is up 10% over 2009 and 20% higher than it was at the start of 2008. The average price of homes currently being sold in Ontario is $329,134, only about $500 more than the national average. Overall, buying throughout the GTA is seeing an upswing, as evident by an 18% spike in buyers applying for Toronto mortgages at the onset of 2010.

As with any city, location is key, especially in an urban center as diverse and large as Toronto is. You will pay, in some cases, a 50% premium for a Toronto waterfront condo in order to have an amazing view and access to a great pedestrian culture. In other words, a three bedroom unit on Toronto's harbour that is selling for $400,000 would cost $300,000 if located just one block north, away from the waterfront.

Of course, the further you want (or are willing) to live in the suburbs and be detached from Metro Toronto, the greater the savings. Even by glancing at the Ajax MLS, you will see three bedroom homes selling for an average $404,000. A similarly-sized property would cost upwards of $600,000 in downtown Toronto.

Similarly, if you were to look for a three bedroom Port Hope, Peterborough or London Ontario home for sale further outside of Toronto, you will find prices drop by about a third. A three bedroom house that would cost approximately $600,000 in downtown Toronto would list for $240,000 in a smaller, adjacent city.

Of course, Toronto's listing prices represent the averaging of all of the many types of properties only available in Toronto. Moreover, because prices can differ so drastically downtown, a three bedroom home that is listing for $400,000 in East York would cost over $1,000,000 for an identical property located over the Governor's Road Bridge in North Rosedale. As any guelph real estate agent can attest, the market is easily influenced by trends and what's fashionably prestigious at any given time.

With some time and determination, you will be able to aptly understand the differences in the real estate markets in and around Toronto. Be sure to appreciate that, despite the asking price, property taxes also vary greatly among neighbourhoods, downtown and suburban communities.