It looks like Toronto's immense housing bubble may finally have burst. When you hear that people are walking away from their deposits, it's over. Between the fragility of the CMHC ($540B in mortgages to insure, $17B in assets), the dependence of the Canadian banks on their mortgage incomes, and the fragility of the Canadian mortgage-holder, I think it's going to get ugly.
I wonder how this will affect condos. Condo prices seem to follow their own unknown set of influences quite apart from the otherwise lunatic house prices. Condos already seem to be prone to unique problems. And the density in some areas is crippling our infrastructure, such as turning parts of lake Ontario into an open sewer. It's getting to the point that I don't know if the city even knows what it's built with these towers.