Toronto is now Canada's least affordable housing market

The Toronto real estate market has already been deemed the hottest in the country, and now it's the least affordable too, having surpased Vancouver for the top spot according to RBC.

According to the bank's "affordability measure," which takes into account a variety of factors like interest rates and housing inventory, the city hasn't seen a market this tough to buy in since early 1990, notes the Toronto Star.

At that time, interest rates were 14 per cent. Today they are 0.5 per cent. This affordability crisis, if you want to call it that, is all about housing scarcity. Skyrocketing prices based on low inventory, particularly for detached homes, is driving prices through the roof.

RBC predicts that the trend will continue through next year, with housing prices continuing to rise. If there's a sliver of good news for would-be buyers, it's that the bank forecasts that the Toronto market will not match the 14 per cent price increase it anticipates will occur this year.

It's estimates that 2017 is more likely to witness a five to 10 per cent rise in prices. Don't get too excited.