Caviar%20Emptor says "- GTA is still massively overpriced in relation to financial fundamentals. INCORRECT" 

Unless you uses the fundamentals the banks use, Housing Expense Ratio

What is 'Housing Expense Ratio'

A ratio comparing housing expenses to before-tax income that is used by lenders to qualify borrowers for a mortgage. The housing expense measure includes mortgage principal, interest payments, property taxes, hazard insurance, mortgage insurance and association fees. The limit is generally 28%.

http://www.investopedia.com/terms/h/housing_expense_ratio.asp#ixzz4qi6aaJ9P


A 1.2 million dollar detached home with a 200,000 down payment, leaves a million dollar mortgage. At 2.94% (a rate soon to disappear) the monthly payment is $5,086.72. Add 500 for everything else. To get that mortgage the buyers needs a monthly gross of 19,952 bucks. 240Gs a year. 

The average Toronto family makes 68,110. Quite a fundamental gap.