Canada has fallen into a Housing Speculation Economic Trap.
But Canada is not alone. 

[[
speculation crowding out productive investment -> fall in productive investment -> low output caused by money sucked out of the economy -> low interest rate to increase money supply required for economic growth -> enabling highly leveraged speculation -> speculation crowding out productive investment ->
]] if loop not broken, continue until economic reset, also know as a great depression

There are two fundamental ways to break the "Speculation Economic Trap" spiral. The first way is discussed in detail in the paper I have cited. It is simply raise the interest rate to prevent highly leveraged speculation. Raising the interest rate will force overly leveraged Housing Speculation Investors to sell their assets. 

This has are least 3 problems:

http://tdwebste.blogspot.ca/2017/04/canada-has-fallen-into-housing.html