Someone would be dismissed if they said Manhattan, London, Paris, and Rome are in a bubble. It's just accepted that only the rich can buy there.
Toronto's housing situation is called a "bubble" because it's transitioning to a similar, global city status, and a lot of people are having a hard time facing that owning a house there is not meant for them.
I live in High Park. In a one bedroom apartment. I see for sale signs everywhere plastered with 'sold above asking!' labels.
The cold reality in Toronto is that it's just supply and demand. There are a handful of houses, and a handful of people with the resources to buy them and live in this beautiful place.
For the rest, take the GO train.