I don't know much about the Canadian real estate market, but I've heard a lot about how Toronto prices are inflated. What really matters is why you want to buy real estate, and how much it will cost relative to your income. Can you afford to put a good amount down, and easily afford the monthly payments? If the price is cut in half, can you still keep the home? Do you have a solid emergency fund in case of job loss or the need for repairs? Are you able to secure a mortgage with a good rate, at a comfortable payment amount? Are you planning to stay for many years?
I bought my current house in 2006 in the US, right before the financial crisis. To this day it's barely worth more than I paid for it. Over the last 11 years I've been able to keep this house through my husbands job loss, an extreme medical crisis, changing companies, and more. The fact that it hasn't increased doesn't bother me-I'm in it for the very long haul and not planning on moving. But I have friends who bought the same time as I did who lost their house to foreclosure, because they weren't as well prepared and didn't buy well within their means.