Some economists here have crunched their own numbers and come up with results similar to those of the German bank.
“It's true, housing does look very overvalued in Canada, particularly here in Toronto and in other major cities like Vancouver for example,” said David Madani of Capital Economics.
Madani urges caution for any potential buyers, warning the "red flags” are up.
“Anybody looking to buy a home should seriously be looking at the long-term view and not just base their decision on the low interest rates, for example,” he said.
Would-be home buyer Alireza Anvari has been looking for a place for years, and is now running out of time as his wife prepares to join him from Kazakhstan.
He says he can afford a down payment for a house — but the Toronto market makes him “incredibly nervous.” He has extended his search outside the city to Hamilton.
“This is the worst time to buy in the history of the last 10 years,” he said. “I can't wait no longer, I have to buy something.”
But, real estate firms say the market is healthy and sustainable.
“There's no bubble,” Desmond Brown of Royal Lepage told CBC News. `We have the low interest rates, we have the immigration of 100,000 people coming into Toronto every year, there's no bubble in Toronto.”