Totally disagree with the TD economist. You can’t compare Vancouver (Victoria also fall under this) to the rest of the country.
You can’t tell me that if there is a bust that home prices in downtown toronto will be equally impacted to let’s say Etobicoke or Markham.

Also, out of the 250,000 immigrants to Canada, 100,000 settle into the GTA. We require 40,000 residences built every year. Back in 2008, when the markets crashed, and the US had the sub prime mortgage meltdown, Canadian Banks got worried and stopped lending for housing and construction, which caused the markets to slow down.
Once everyone got a chance to breath and saw that Canada was not impacted, the banks started lending again. However, during 2008, 2009 and 2010 we didn’t produce the amount of housing units required (short supply/high demand). We are still playing catch up. This is why we have only 1% vacancy in the rental market.

I believe that the slowdown/correction will be short lived and result in a shortfall of supply in units being built again, which will again cause a demand and raise prices back up again.

I do agree that prices are overinflated and will result in a correction.

That being said, I’ve been hearing about the condo bubble bust for over 10yrs. When the markets crashed in 2008 there was a correction. However, I believe the prices were back to their norms within 14mths.

All the way to $250K for an average single family dwelling in a nice sub-division about 15 minutes from work; about $1,200 a month.