If we look at the long term housing data (100 years +) then something unexpected emerges - in the long term, home prices tend to be rather flat.
Below are long term real housing price indexes for Australia, Norway, United States and Canada.
Australian long term property prices:
Chart by Philip Soos
Norwegian housing bubble:
Chart by icelandicecon.blogspot.com
And here's a world famous housing bubble that occured in the US:
Chart by Jason Kirby
The chart below shows a long term housing index for Canada. Home prices in Canada behaved just like the US until the late '80s.
Chart by Jason Kirby
I don't know about you, but to me the graph above suggests that Canada has a housing bubble.