No doubt about it, real estate is a tricky business. We all know about the recent crash in the United States, but how much has it really affected Canada? What can you expect when you go hunting for a Toronto home? Where will you find Toronto luxury homes for sale, or by contrast a more modest place to live? We are going to take a look at some of the many different Toronto neighbourhoods and compare them according to price. We will also take a look at why the higher priced neighbourhoods are so popular, and some alternatives for house hunters who have less money at their disposal.

We will start out with the very neighbourhoods in the city where homes fetch the highest prices on average. For the most part, they are located right in central Toronto; around the shores of Lake Ontario and in near to the various preserved parklands that still survive in the city. Without exception, these neighbourhoods are older and almost all were planned out from the outset as havens for the wealthy within the city. They include Rosedale, St. Andrews, and Lawrence Park Toronto. Homes in these postal codes will cost on average over a million dollars. That money will get you a lot of house, many of them built in the old Victorian mansion style.

The central area of Toronto also contains the second highest priced houses in the neighbourhood. People looking for luxury condominiums in downtown Toronto will find them here. Prices in places such as The Annex, Humewood, and Lawrence Park North all hover around the $800,000 mark. Only in Western Toronto will you find comparable prices; Princess-Rosethorn has similarly priced real estate, much more than the $390,000 average price you will pay for Toronto homes nearby.

It is surprising that the west side contains these high priced areas, because for the most part the most affordable homes in the city are located in these neighbourhoods. House prices in Elms, Humber Summit, and Keelesdale are the most affordable in the city, perhaps because they are smaller and near to areas of major traffic congestion. Still, as housing prices in the city continue to rise, these can make excellent choices for those looking to get their foot in the real estate door.

Look to the eastern neighbourhoods of Toronto for the most uniform prices, a nice surprise for many because of the proximity of many of them to the beaches of Lake Ontario. Cliffcrest, Blake, and Danforth real estate are all priced at the Toronto median, from $390-410,000. They're located a bit outside the city and the houses are decidedly middle class, so they stay affordable for most.

As you look for real estate in the city of Toronto, you will find huge discrepancies between Rockwood homes for sale and those in Cabbagetown. The city's prices are based on the quality of their locations and the housing stock, with the most affordable in the west side and the most expensive close to the action in the heart of the city.