"The new regulations aren't going to do much for the buyers who are buying $1 million+ homes."  They have already impacted the $1 million+ market, just take a look at the 20% drop in detached homes (typically sold over $1 million before this crash).  

"Finally, if you look at the real estate markets in London, Berlin, Tokyo, New York, Boston, San Francisco, etc.. they all have detached housing that costs much more than Toronto's "  But we're not London, Tokyo or New York.  New York has a population of 8.5 million, London has 8.8 million and Tokyo has 38 million.  Toronto has just under 3 million.  We're a second tier city so for you to compare Toronto to a world class city is a joke.