"Speculative bubbles are not broken by increased supply".  If you really believe that, then consider what happened to the oil prices, and Alberta's finances, when new supply from American shale suddenly came on line.  Poof.....no more oil bubble and prices fell from $150 bbl in 2006 to about $50 per barrel today.  For all you know, the future of housing in the areas surrounding Toronto might turn out to be temporary trailer parks on agricultural land or maybe people leaving the area in droves.  Who knows, but the crisis will pass as it did for oil.  The solution for high prices IS high prices.  The market works if government will let it, and supply and demand will come back into balance eventually.  Until the next crisis, of course!