I remember the last Toronto bubble, although I wasn't old enough to participate in it.  Quite a different situation, in that there were tremendous numbers of listings and people were flipping purchase and sale agreements without waiting for the house to actually close.  Now there are virtually no listings in my area of Toronto so anything that is listed is gone in an instant.  The best way of solving this problem is to lower commissions and lower land transfer tax so more people want to sell, but neither real estate agents or the municipal government is prepared to do so.