The price of housing always - always - returns to the traditional price-to-income ratio. Bob Schiller would call it "reverting to the mean." 

The mean has been traditionally a 3X gross income rough guide. Right now, the average Toronto house is around 10X gross income for the average 416er. It's never, ever been that high. Not even close. 

Combine this with rising interest rates, certainly rising over the historically low rates we had until very recently. 

This looks 1) catastrophic with 2) a decade long wait until recovery, unless wages start exploding. Interest rates are rising *just* as the market is correcting, and wage controls enter their third decade.  

I hope you're right. I believe you are not.