Pundits have been saying for years that people should NOT continue to
pump more and more dollars into their  residential real estate
properties (i.e.their homes). During this same time period, we here in
Canada (Ontario to be precise) have seen housing prices go through the
roof as it has in most of the developed world.
My question is: can this real estate pricing boom- trend continue
spiralling upward indefinitely or are we sitting on a precipice due
for a crash or at the very least a long period of stagnation?
Should one stay put in a sensibly priced home (paid for) or join the
crowds, throw caution to the wind, and buy a more expensive home with
cheap low interest dollars?

As the realtors like to say the three most important factors are
location, location and location. I think you can see the answer
changes from Fort St. James, BC to Vancouver, BC. Bad times could hit
Canada next week. Almost surely will if the USA ecconomy collapses, so
it is prudent to have money left over from most pay checks to invest
in something other than your home. If you already have $50,000 in
savings instead of $50,000 in debt, like so many of us, you can afford
to be reckless, otherwise I suggest you stay in your present home or
move up, only a small amount. Resale value is best if you buy one of
the cheapest houses in the neighborhood. Generally you should keep
looking until you find what you want instead of modifing the house you
are in or the one you buy.   Neil