BTW, the Tyee article you sent me is definitely interesting...but I gotta admit my head gets a bit turned around after a point in the technicalities of mortgage types, securitization, etc. I really don't know how the Canadian context compares to the seriously flawed US one.

As far as prices, the folks I know whose whom appreciated, well the market has definitely come down. Things go up, things go down...guess it's a question of rate of change over time. As far as the ordinary working person not being able to afford...well, I am sort of one of those people, and can sorta of afford a house (depends on where). Lots of people can, assuming you compromise on location. Sure you ain't gonna get that $12 million architectural seaside marvel in West Van...but you could probably get one across the water on a ferry-access only island so that you can at least LOOK at it LOL ;-) Definitely the cost of housing here is spurring growth in the 'burbs, where it's much, much more affordable...like most North American cities. I guess we'll see.