The Mayor of Toronto has rejected claims by BMO chief economist Douglas Porter that the city is in a housing bubble.

John Tory told a press conference Thursday that lots of economists and other stakeholders talk about the state of housing market and publish reports but “none of those people, to a person, has as yet told me there is any kind of panic driven or panic-inducing situation.”

He said that the sharp rise in home prices in the city is a concern but because they mean people can’t afford them, not because there is cause for panic.

He added that the market is healthy and the price rise is due to demand as more people choose to live in Toronto.

Mayor Tory said that there would be no sudden policy changes to cool the market but that officials would consider how to responsibly tackle supply issues.

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