{"id":3223,"date":"2008-06-09T19:26:21","date_gmt":"2008-06-10T02:26:21","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=3223"},"modified":"2008-06-09T19:26:21","modified_gmt":"2008-06-10T02:26:21","slug":"canadian-housing-crash-could-induce-more-investing-in-america","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3223\/canadian-housing-crash-could-induce-more-investing-in-america\/","title":{"rendered":"Canadian Housing Crash Could Induce More Investing in America"},"content":{"rendered":"

You heard it here first. Canadian real estate is in the danger zone. Well, maybe not all of Canada’s housing stock will fall but the Western provinces look overvalued. If you subscribe to my site, you heard about this<\/a> over the weekend.<\/p>\n

It all started back in 2003. A barrel of oil was trading around $30. Then, we liberated Iraq from Saddam Hussein. Oil spiked up then retreated to the mid 30s for the rest of 2003. Dubya landed on an aircraft carrier, proclaimed “Mission Accomplished”<\/a>, and the war was over.<\/p>\n

Kind of. Then, the “police action” started. That’s when the rapid ascent started in oil prices. By the middle of 2005, we crossed the $60 threshold. Then Dubya pushed the food for fuel policy<\/a> that caused our farmers to reallocate their crops to refiners rather than grocers. In the past 18 months, the price of oil doubled. We called this commodities-push inflation at Bartley Hall<\/a>. The discretionary dollars got crunched by triple digit tanks and five digit mortgage payments and America became a subprime nation….<\/p>\n

…and Western Canada got rich….so they all bought real estate.<\/p>\n

In commodities-rich Canada, they prided themselves on “sober” lending guidelines. No sub-prime mortgages and a heavily regulated mortgage industry insured that the irrational exuberance we displayed in The States wouldn’t mirror up north. Then, the Canadian Mortgage and Housing Corporation (CMHC) ripped a page from the Wall Street playbook, extended the amortizations, lowered the down payment requirements, and it was the wild, wild west, all over again. Same scene; different location.<\/p>\n

American real estate crashed, the Fed lowered rates, and the US dollar tanked. In late 2007, the loonie reached parity with the dollar. In Calgary, the median price was $200,000 (Can), in 2000. It grew to $250,000 (Can) in 2005. It grew to $417,000 (Can) in 2007 (suspiciously with the rise in oil prices). If you bought an Calgary investment property, in 2000, you doubled your money. This chart<\/a> shows that household incomes spiked along with Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

You heard it here first. Canadian real estate is in the danger zone. Well, maybe not all of Canada’s housing stock will fall but the Western provinces look overvalued. If you subscribe to my site, you heard about this over the weekend. It all started back in 2003. A barrel of oil was trading around […]<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,5],"tags":[],"class_list":{"0":"post-3223","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-investment","7":"category-real-estate","9":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":324,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/324\/republic-year-over-year-median-prices-down-in-some-areas\/","url_meta":{"origin":3223,"position":0},"title":"Republic: Year-over-year median prices down in some areas . . .","author":"Greg Swann","date":"September 12, 2006","format":false,"excerpt":"Here's the Republic's read on yesterday's housing numbers, a much more dire interpretation:Valley home prices dipped again in August, even falling below last year's levels in some areas. It is the first time since the Valley's housing market turned red-hot in late 2004 that the monthly median price of existing\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":319,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/319\/more-august-housing-numbers-for-the-phoenix-area\/","url_meta":{"origin":3223,"position":1},"title":"More August housing numbers for the Phoenix area . . .","author":"Greg Swann","date":"September 11, 2006","format":false,"excerpt":"Dr. Jay Butler of ASU has his August numbers out, and his report is faithfully echoed by The Business Journal of Phoenix. The big news: 2006 is not 2005. Who knew? The real news? August was not great but not awful. You heard it here first, And second. Fifth place\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":651,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/651\/the-headline-buried-in-the-news-real-estate-agents-are-as-safe-as-houses\/","url_meta":{"origin":3223,"position":2},"title":"The headline buried in the “news”: Real estate agents are as safe as houses!","author":"Greg Swann","date":"November 18, 2006","format":false,"excerpt":"It's Saturday, and you know what that means. If the Arizona Republic doesn't piss all over the real estate business, someone might accidentally go out and buy a house. Here's the scoop:Complaints against real estate agents are on the rise, with consumers accusing them of everything from selling property without\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":5,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/5\/sky-falls-as-predicted-none-injured\/","url_meta":{"origin":3223,"position":3},"title":"Sky falls as predicted, none injured","author":"Odysseus","date":"November 11, 2005","format":false,"excerpt":"As has been persistently predicted for more than 18 months, the sky has at last fallen in the Phoenix real estate market. This per the Arizona Republic. The median price for residential housing actually went down by one percentage point in October, the first time this has happened since December\u2026","rel":"","context":"In "General"","block_context":{"text":"General","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/general\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2003,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2003\/youll-lose-money-if-you-buy-a-house-which-house\/","url_meta":{"origin":3223,"position":4},"title":"You’ll lose money if you buy a house? Which house?","author":"Greg Swann","date":"October 5, 2007","format":false,"excerpt":"This is my column for this week from the Arizona Republic (permanent link): \u00a0You'll lose money if you buy a house? Which house? Jim Cramer, a clownish buffoon who screams for a living on cable TV, went on the Today show last week and said, \"Don't you dare buy a\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2537,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2537\/now-if-we-could-get-general-motors-to-build-one\/","url_meta":{"origin":3223,"position":5},"title":"Now If We Could Get General Motors To Build One…","author":"Doug Quance","date":"January 25, 2008","format":false,"excerpt":"Doubling Our Collective Fuel Mileage Could Help Drive Oil Prices Down Our country has been enduring high oil prices for the last few years - but that transfer of funds out of the country has had a detrimental effect on the economy. And any bad effect on the economy will\u2026","rel":"","context":"In "General"","block_context":{"text":"General","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/general\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/3223","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=3223"}],"version-history":[{"count":0,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/3223\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=3223"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=3223"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=3223"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}