I think that Canada is going to be hit hard in the housing market.
Condo's will be severely impacted (they already are). While anectodes aren't consider facts, what I've been seeing alot of, are people selling their homes 10-20K below asking price, sometimes more. This is becoming a common occurence - go back a few months and that was unheard of.
The Toronto area, downtown core for housing, I don't see being that heavily impacted - for houses. However condos will be hit hard.
Vancouver is a disaster.
As for investment ideas. I agree with Silver and Gold. The other option are bank stocks. They still recording record profits. And they are in a position to win every scenario.
a) If people fore close their homes, majority at insured for default by CMHC and GE.
b) If rates go up, the bank will have a higher spread.