Different reason, same story, as what will happen eventually in the Bay.Non-permanent, localized real estate stimulus from a booming industry:Yours: Oil/Energy/Resources (I assume)Bay: Tech/Foreign MoneyIt can't go on forever.And yours is already experiencing the decline in the real economy.

With the economy and crime lately, it's just good policy.  

Conversely, during the peak of the previous economy I visited a few high end new construction sites as a visitor where pretentious design/build type companies were hired and using their in-house Project Manager.

Economy of scale.  

I always caution those investing out of state to make sure you do your own due diligence and learn about the area, the neighborhood, what rents are, sales, economy, etc. 

Another very important factor to consider is that Canada's economy is highly dependant on oil.

A diverse economy is ideal.  

Housing is crazy right now and our economy seems to be doing "too well".

If you look at the trailing PE ratios of the S&P 500 and the softness in the economy (see the general mood in recent earnings reports), I believe that we are overvalued with the Dow at 17500 relative to what the fundamentals show.

The problem for me in doing any deals thus far is the down payment money, and people are just so tight that owner financing isn't even an option in this economy/market in my area.