I just read this article by Larry MacDonald of Canadian Business In it he reviews five reasons why the housing market in Canada won't crash. I have to say he made a very strong case on all five. He certainly is bang on when talking about the differences in local markets. As a resident of Nanaimo, I immediately make the comparison with the insanely high prices in Vancouver and can agree with him whole heartedly.
Also of great note is the difference between Canadian and US housing markets with Canada having greater recourse rights and the fact that the subprime mortgage market was far less advanced in Canada. These are valid points that made a huge difference with regard to the last crash and how we Canadians fared as a nation.
At any rate I feel that this is a must read so am giving you the link. This would be a great topic for discussion amongst both Canadian and American ActiveRainers and I look forward to seeing the commentary.