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The comparable data only go back to 1980, but as these charts shows, there is a yawning gap between average home prices in Canada and the U.S.

This gap is likely to close as the housing market in the U.S. continues to recover. Prices are already beginning to increase, but this has been more than offset by the recent strength in the Canadian dollar.

U.S. foreclosures have declined and sales are up, especially for investors who are swallowing up cheap properties to turn them into rentals. Canadians represent the largest single foreign purchaser of U.S. properties in the Sun and Sand States, but Europeans and Latin Americans are pouring money in as well. With interest rates so low, and the Fed working to push them down even further, housing activity is likely to continue to recover.

Don’t expect the bubble-level prices to return, but vacation or retirement properties south of the border are likely a good investment.