Average Toronto house price surpasses $1 million

Average Toronto house price surpasses $1M

Eight examples of what you could buy with that real estate commission

Average Toronto house prices soared past $1 million (Getty Images / Martin Barraud)

(Getty Images / Martin Barraud)

In June 2015, the average sale price of a house in Toronto surpassed the $1 million mark for the first time. No doubt homeowners across the city were popping champagne, but buyers were in no mood to celebrate. And realtors? Well, any real estate agent representing an average detached home that sold for $1.052 million would be paid a $26,300 in commission. A seller, then, would need to fork out more than $50,000 in commissions for the sale of that million dollar home—since the seller pays both their own realtor’s commission as well as the commission for the buyer’s realtor, at a standard rate of 2.5% per realtor. You may want to hold off on the bubbly.

It doesn’t take a millionaire to understand that there are at least a million different ways to spend $50,000. PropertyGuys.com lead analyst, Walter Melanson, has a few suggestions. Ranging form the necessary to the luxurious here’s what you could buy for $50,000:

* $16,740 will buy you: An entire month in a suite at the Ritz Carlton in Toronto

* $18,306 will buy you: Five top-of-the-line new appliances at Best Buy

* $22,576 will buy you: A pair of Toronto Maple Leafs Platinum season tickets

* $24,880 will buy you: Four years of Arts & Sciences undergrad tuition at the University of Toronto

* $30,000 will buy you: A private concert for you and your friends by Ice Cube, or spend $40,000 for a private audience with David Crosby and Graham Nash (of Crosby, Stills and Nash fame)

*$38,252 will buy you: Four business class tickets to Sydney, Australia with Air Canada

* $39,834 will buy you: Five years of groceries for the average Canadian household

* $43,058.70 will buy you:2015 Mercedes-Benz CLA250 4MATIC Coupe

To put all this in perspective, the median Canadian individual annual income, according to Statistics Canada, is $32,020. To make $50,000 in a year, a Canadian making $12 per hour would need to work more than 4,165 hours–that’s more than 11 hours per day, every day of the year.

Source: Tuned PR & PropertyGuys.com

Read more from Romana King at Home Owner on Facebook »