Historically, increased land values have generated an increase in property prices. What does it mean for Toronto Home Buyers? New home prices will continue to climb. As Builders pay more for land development in the City of Toronto, the cost of newly constructed housing will be higher.  Also, elevated building materials and energy costs will also grow and influence the final price of those new homes in Toronto, including houses, condos, lofts, etc..  The HST which was introduced in July of 2010 will increase the amount paid in some of the closing costs and the price of new homes.  On resale homes the HST has no effect other than in the closing costs as it is added to services such as home inspections, realtor fees, appraisals, etc.