Many times there have been economists , experts or as many would refer to them now as soothsayers predicting Toronto's housing bubble about to go bust and so many times they have been wrong because, in short, they just don't know.

This is not to bash these experts as they are basing their educated guesses on statistical models that does not work in real time and the changing situations whether this be political, social or even economics.  Fortunately for the smart consumers who have gotten used to these kinds of negative news or scare mongering, they just ignore these experts' advice and make their own decision whether to buy or sell.

The question is "Is Toronto housing market about to bust?" and the answer to that is no one really knows.  However, based on the following information about new immigrants coming to Canada, especially the wealthy ones buying up real estate as a safe investment due to Canada's political stability and vast natural resources that will continue to propel Canada's prosperity way into the future, Toronto's housing market will not go bust anytime soon.  Anything with the Bank of Montreal (BMO) special mortgage offer of 2.99 per cent for five years two weeks ago, which is unheard of for mortgage rate and other major banks following its lead, it's like the throwing gasoline on to a housing market that may be inflated, but is still going to get  bigger. 

Compared to other major cities around the world like New York, Hong Kong, Tokyo, Moscow, our most expensive real estate locations are still affordable.  If there were to be any downside to the real market, it will be a minor one and not the kind of major correction we have seen in the US housing market as we know that it was just fraud perpetuated on fraud.

Canadians and international buyers know the market well enough not to go crazy with the exorbitant prices as seen with Trump Tower Toronto's pre-development as buyers trying to back out of the deal as they know that it would be hard trying to make a return because the prices are not reasonable when they want to sell(See the link below as reported by the Toronto Star).  However, if you really want to get good value for your money, especially if you plan on living here after buying, try going for markets in the GTAs instead of downtown Toronto.  You'll get more space and less stress with the busy downtown, unless you like to live in small confine space and enjoy the hectic pace of what city living offers. 

Link:

Source: The Toronto Star (online) "Investors fight to back out of Trump tower"