Toronto's strong market is driven by strong trends that are not likely to end soon. A lot of money is flowing into Toronto.
Having avoided the fallout from the financial crisis and U.S. housing market collapse, big money around the world has new respect for the Canadian Banking System. Investors see Toronto as a safe secure place to put capital.
Toronto is a cultural powerhouse, continuing to have a large influx of immigrants. Vast numbers are choosing to live downtown and The City of Toronto is committed to supporting that increase in density. For example builders are putting up more town houses and semi's on smaller lots because the land is expensive.
Toronto is the Condo Capital of North America, with downtown condominium towers continuing to fill up. Interest rates are low and with the decrease of the Canadian Dollar it balances out raising Prices to the foreign investors. Large institutions such as pension funds and Real Estate Investment trusts have money to spend so they invest in a city with guaranteed returns.