I don't discount the difference commodities have made and part of the Canadian boom has been the American reluctance to drill for oil, thereby making Canada their major supplier.
It's also wise you added (not yet) to the Canadian Real Estate market. It could be argued that American housing is closer to genuine market value than Canadian prices. The Canadian real estate market is unrealistically high only through government manipulation, not as a result of the actual marketplace.
Free trade is good for everyone, the manufacturer and the consumer. There is no long term successful alternative.
The US is only reluctant to drill in two areas, Anwar, and certain parts of the off shore (California coast, Florida coast) The US is drilling like mad in North Dakota, the north eastern US (ie New York, Penn)
Can housing prices are outrageous compared to the US. The squatter home in Texas which I believe was stated to be worth $300 000 would be a $700 000 home in Calgary. A $300 000 home in Calgary is a small starter home or a nice condo outside of the downtown core. The Can government, and the BoC are hoping to maintain home prices, and hopefully not see a colllapse. At least most Canadians were required to put a larger downpayment on their homes, which will ensure more Canadians will not just walk away and allow for foreclosure if possible
The US produces 9 million or so barrels of oil a day, it is in the top 3 producers, the problem is not that the US is not drilling, the problem is that the US does not have the reserves to drill to make much of a real difference. When you use 18 million ( down a couple of million from its high) and have rather small economical reserves compared to what is being used on a regular basis, you are going to have to import alot of oil.
As for free trade, it can be good it can be bad, it depends on the state of the economy, and the population. Total free trade in Canada would mean the only people making any real money would be in the resource sector. Manufacturing would be a minor player, any secondary processing of raw materials would be unlikely to occur, and the standard of living for a large number of Canadians would decrease, while those in the resource sector would increase. With a small population where the majority of people can be employed in the resource sector, that could be a good thing. A larger population ( but not large enough to make our domestic markets large enough to support domestic manufacturing for domestic usage) total free trade would be a negative for Canada. The Can auto industry was not built through free trade, but managed trade, the majority of manufacturing in Canada has been built through managed trade. Realistically the only manufacturing that would occur in Canada on a significant basis would be to support our resource sector with total free trade. The US was built on the backs of tariffs, increasing the competitivenes of US business. Japan, South Korea, Taiwan and now China have been built or are building based on managed trade (Toyota, Honda, and Hyundai would not exist with free trade)
Overall free trade is fine between developed economies of a similar development status and roughly equivalent standards of living. Or if part of the free trade agreement also includes the labour market. Allowing for the labour to move freely between the countries to compete within each others labour markets