I think there are a lot of factors as to why the Toronto RE market is so resilient:
1. There are a large number of public sector employers in the city and this provides obviously stable incomes - fairly recession proof jobs in addition to the Banks who have had limited layoffs
2. Lots of wealth in the city and there has been, and it continues, a significant transfer of wealth over the last few years
3. With a city fairly stable in employment, and basically the epicentre of the Canadian economy, you have lots of two income homes and a strong desire to be upwardly mobile and able to afford it.
4. Lets not forget rates are still very low and as I understand Property taxes in Toronto are less than elsewhere.
Just a few thoughts