Toronto != Downtown Toronto. Part of the reason everyone wants to live in the core is the horrible public transit system. I used to live uptown but near the TTC - almost every weekend in the summer, we had to use shuttle buses because of track maintenance.<p>When I look at the GTA, prices make no sense to me. Million dollar homes in Markham, 600K townhomes in Mississauga? What incomes justify this?<p>I do agree with you on the &quot;low interest rates or else&quot; theory.   Even a few points increase will cause people at the fringes to exit the market. And that has potential to topple everything over.