Housing prices in Toronto and surrounding cities are rising at a "fiery" rate not seen since the late 1980s, according to the chief economist at BMO Capital Markets. "The Toronto market — and the many cities surrounding it — are in a housing bubble." "The massive price gains are being driven first and foremost by sizzling hot demand, whether from ultra-low interest rates (negative in real terms), robust population growth, or non-resident investor demand," he wrote. CMHC suggested the price gains in the GTA were contributing to increases in other southern Ontario cities, and even regions as far away as Sudbury and Ottawa. "Toronto and any city that is remotely within commuting distance are overheating, and perhaps dangerously so," Porter said.

Source: CBC News February 16, 2017 14:48 UTC