Do The Math

From today's Greater Fool

The average American home sells for $170,000. The average family income is $65,300. So the average USA home costs 2.6 times what the average household makes. US homeowners can get a mortgage rate of 4.2%, guaranteed for 30 years. And the interest is tax-deductible.
The average Canadian home costs $341,000. The average family income is $71,000. So the average home costs 4.8 times what a household makes in a year. Fixed-rate mortgages here are available for an average of 4.2%, which must be renewed at market rates every five years. Sorry, no writing interest off your taxable income.
Clearly the burden of home ownership is staggering in Canada compared to our neighbour. We pay almost exactly double for a roof, even though our incomes are similar. We’re thrown into interest rate roulette every few years, while they get a lifetime mortgage rates. We pay inflated loans in after-tax dollars while they write them off.

This means that the average homeowner as a single, highly leveraged, completely undiversified asset. No savings, no hedges, no nothing. And a 10% swing in price could put tens of thousands of these "investors" under water.