Evidence mounts that speculation is behind Toronto's property bubble

Ottawa

TORONTO'S housing boom is unrelenting. Prices in Canada's largest city surged more than 20 per cent over the past year, the fastest pace in three decades, data released last week show. Some of the city's neighbouring towns are posting even bigger gains.

It has become a matter of considerable alarm. Stability is one concern - if the market tumbles, so will Canada's economy. Pricier real estate also drives away less-affluent, younger people and boosts the cost of doing business, eroding competitiveness.