Mish has an interesting article about property today that echo's my sentiments.
We get a mention in OZ.
Your question is not really about Canada given the same metrics apply to London England, Sydney Australia, Shanghai China, or anywhere else. Simply put: The more out of line those factors are, the bigger the bubble. And the bigger the bubble, the bigger the crash.
There may be other considerations, but financially speaking, if home prices are out of line with rental prices, wages and wage growth, and jobs, you are better off renting. The more out of line they are, the better off renting you are, anywhere worldwide.
