Historically, housing crashes every 15-25 years. Toronto housing prices peaked in 1959, 1974, and 1989. Each of those peaks were preceded by a boom, and followed by a decline lasting 5 to 11 years. The current pattern looks similar to previous crashes.

Historically, housing crashes and recoveries do not follow general economic booms and recessions. The 1970 and 2008 recessions only caused minor blips in housing prices, and house prices stabilized and started their recovery during the 1996 economic slump. The fact that the Canadian economy is doing well does not mean Canadian housing is doing well.