Once the federal, Ontario and Toronto governments start slapping on additional taxes, levies and/or registration requirements we will see some significant cooling. This frenzy is in the lead up to these likely additional taxes ( capital gains taxes, flipping taxes, land transfer taxes, foreigners taxes, additional registration requirements etc ) - just like MetroVancouver. Buying now may mean 25% lower prices in a year or two like in many higher end home - usually foreign money financed - like we saw in MetroVancouver.
Proceed with caution. If you buy, and can't hold with cash flow, you might get stung.