Toronto has been the economic and immigration centre of Canada for 20 years. Why has there suddenly been an inflection point in the rate of price growth in the last 2-3 years? [1] What about Toronto's economic fundamentals (i.e. the capacity of Torontonians to pay for housing) has changed in that period?
Don't get me wrong, there are definitely organic factors that contribute to the price growth in Toronto. But those cannot account for >15% year-over-year growth.
I think point 5 is likely important to recognize. The CAD to USD ratio has dropped dramatically (Currently 1 USD = 1.33 CAD). If you picked the exchange from 5 years ago you see it was 1 USD = 1 CAD, if you do 10 years it was 1 USD = 1.07 CAD.
I'd argue that at least 20% of the price increase we're dealing with today is related to inflation.
Have you visited those cities? I don't find it surprising at all.
Quebec / Montreal: historical politics pushed investment to toronto when separation was on the table and pushed by certain political groups (again bumping toronto prices and not helping those areas at all!)
Winnipeg / Calgary: isolation from other large cities, colder climate, less immigration friendly.
Don't get me wrong, there are definitely organic factors that contribute to the price growth in Toronto. But those cannot account for >15% year-over-year growth.
[1] http://www.torontohomes-for-sale.com/4a_custpage_2578.html