You probably can afford a house if you have 20% down and can make the payments with extra room to spare - the rules for qualifying for financing have been tightened and your bank/broker will tell you if you meet the criteria. Is it a good investment right now? Well, maybe, maybe not.
In order to consider whether it is a good investment, which is a different question, do a spreadsheet with all the costs set out for both renting and buying. Google the web for spreadsheets and tools. The NY times has one that accounts for principal paydown and lost opportunity costs on the money you put down which is not common in other tools but can make a big difference. Compare the costs. Then consider that we are likely in for a drop in prices. How much, I don't know, but not likely to mirror the US given the overall restrictions placed on financing in Canada.
Look at historic real estate cycles and consider whether you are going to hold for more than seven-ten years. In my view, the market is most likely to be higher after this time period than now. You will have to reach your own conclusion. Consider the impact of leverage on this curve. If you drop you lose big if you have to sell, if there is a rise you win big - all because the effects are played out on the borrowed capital as well as your principal.
Consider interest rates. They are at historic lows right now. This means it costs less to borrow. If rates rise, prices my fall further, but your monthly payment will likely be the same. Will interest rates rise short-term? Likely not too much, but in a couple of years I'm not sure where we will be.
Finally, consider your personal circumstances. Is your job stable? Do you mind being a renter? Are you a homebody and have a deep-seated desire to own and personalize your home?
After weighing all this, you may choose to do what I did. Buy anyway but buy in a good location with a suite for rental income to ensure that you have a buffer and get a long-term mortgage and a tax deduction for the income for mortgage interest and expenses. We have 10 years at 3.79. Our housing costs in Victoria are very high, higher than where you are, but with rental income we are paying far less than it would cost to rent - a fraction in fact. I am willing to ride out the cycles. I love owning. We DIY a lot and enjoy the benefits.
Also, your insurance costs are way out of wack. It is not $8000 a year to insure, but more like $800. If you are going to ballpark the monthly costs of ownership other than mortgage I use the figure of $600/month (insurance, maintenance, property taxes).
I would avoid websites like greaterfool.ca - Garth has been predicting doom for many many years and is extreme. I would also avoid the opinions of those in real estate who have a vested interest in a strong market. Seek out experienced investors.