Oh, for sure. Indeed, at that cost, adding earthworks would make it cost-prohibitive, and very hard to make a living out of the land, initially at least.
You could make a fair income from this stand of trees, however. For example, Home Depot in T.O sells 4"x 4"x 8' western red cedar pressure-treated posts for just under $21. Assuming 30 ac of cedars at a density of 1000 cedars per ac, and you harvest 1/10th of the cedars, aka 100 cedars per acre, you would make a minimum of $60k, if they only yielded 1 post/tree. Now, this is an unsustainable continuous harvest, but if you market properly you could theoretically harvest cedars sustainably, and have it pay for your house and mortgage. All while funding earthworks and clearing a bit of land for growing food and raising animals.
Possibilities!
As for the bubble, yeah, the market is segmenting. I hear of bidding wars still in certain areas of Toronto, but condos have already crashed 5%+ there, and country homes outside of commuting range are selling VERY slowly. Some stories of cottages around Haliburton selling for 25% under asking. CRAZY!
Have you seen this?
Ontario Woodlot Association Guide