Less than two years after Finance Minister Jim Flaherty implemented yet another round of mortgage rule tightening to cool off an overheating housing market, some of those markets are back to their unsustainable ways.

Chief among them is the city of Toronto, where some neighbourhoods have seen prices soar more than 50 per cent in the past two years, with at least one neighbourhood doubling prices in that time.

Stand-alone homes in the city overall jumped nearly 15 per cent in price over the past year, according to the city’s real estate board. The average price is now above $888,000 for a single family dwelling.

Condos saw a smaller price jump — up 7.6 per cent, to $366,000 on average — but economists point out even that price hike is well above income growth, meaning homebuyers in Toronto are taking on more debt even as household debt levels hit record highs.

In a client note this week, BMO Capital Markets identified Toronto’s housing market as one of three notable risks to North America’s economic outlook, along with turmoil in emerging markets and the U.S. debt ceiling.

“Accelerating home prices in Toronto risk straining affordability further, causing a correction when interest rates normalize and the market is trying to absorb a record number of newly built condos,” BMO senior economist Sal Guatieri wrote.

According to an analysis from BuzzBuzzHome, at least one Toronto neighbourhood has seen prices more than double in the past two years: Rosedale, one of the country’s wealthiest areas, has seen its median home price jump to $2.53 million at the start of this year, from $1.2 million two years ago.

UPDATE:BuzzBuzzHome has updated its analysis of Toronto house prices, and says the sample size for January is too small to provide a good idea of what is happening with house prices in these neighbourhoods. Reader feedback to BuzzBuzzHome suggested some of these neighbourhoods saw sales in the single digits, so a single house sale can distort data. However, the blog stands by the accuracy of the actual numbers it reported.

But other neighbourhoods — including many that were traditionally considered middle class and working class — have also seen huge house price increases, with prices in most parts of the city rising farther and farther out of reach of middle class households. Check out the slideshow below:

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