- Canadian Oil Production
UP 12% Y/Y at Dec 2013
3,822,000 Barrels per day
- U.S. Production (2x Canada)
UP 13% Y/Y at Jan 2014
7,939,000 Barrels per day
The image of enthusiasm for tangible asset speculation rippled through the twitter-sphere this week with the chart above showing the well known disparity between Canadian and U.S. housing prices. One can compare Canada's housing premium to almost anywhere and be impressed with the northern naiveté that passes for Johnny-come-lately investment. Less impressive are the non-arm's length analyses that come attached to these charts that tout the long term safety of real estate by citing the current pickup in the hot metro prices and seasonal upswing in sales now that the polar vortex has stopped blowing. I won't pick on any particular high profile media economist that has been interviewed about the chart except to say that YOU FORGOT ONE VERY GLARING DATA SET... total residential Canadian national MLS sales are down 16% from the 2007 peak over 6 years ago. That's a big momentum drop over a chronic period of time. See my 6 Metro Canadian Housing Chart.
As noted in the Oil Production chart above, there is more than just housing cost disparity between the U.S. and Canada. Sunshine and employment opportunities are still a very large part of the Canadian emigration drive south.
of the 2-3% of Total Residential Sales made to Foreigners:
in 2010-2012, Canadians constituted the biggest segment of the market, followed by Europeans, Asians, Central-South Americans, Chinese, and Mexicans.
of the Canadians who bought U.S, Residential Real Estate:
- +/- 98% of sales were median priced residential properties at $183,000
- +/- 86% of sales were on an all-cash basis.
- +/- 71% were in Florida, Arizona, and California in a suburban or resort area, eg: Las Vegas, Fort Lauderdale, Orlando, Detroit, or Naples. Source: March 2013 Survey by www.realtor.com
Diane Francis "Merger of The Century"
on The McLaughlin Group April 18, 2014
- 250,000 Canadians work in Hollywood.
- 250,000 Canadians work in Silicon Valley.
- 400,000 Canadians live in Manhattan.
- 7,000,000 Canadians moved to the U.S in the 20th Century for jobs and opportunity. (That's 20% of the current Canadian population.)