I am going to veer off the real estate topic a bit today. I mentioned a few days ago about the interesting conversations I had with some Canadian citizens recently. We talked about the housing market, politics and general perceptions of citizens on both sides of the border.
First, the housing market. (what else would be first, after all, this is a real estate web site). Obviously, everyone around the world knows that the
US
housing market is in a slump. This is blatantly obvious for our North American brothers and sisters. The
US
is the giant on the economic front world wide and at this point is the lumbering giant. The steps we take greatly affect all the others around them. Everyone wants to make sure they don’t get stepped on.
Canada
has been our biggest trade partner for years. What happens here greatly affects them. There are some concerns that our slumping market will spill over to
Canada
, as concerns over the general economy persist. The difference now is that
Canada
is flourishing. The real estate market there is strong, with some regions seeing year over year increases over 50% in values. We here in
Arizona
hear that and could easily be worried, as when we saw tremendous growth, we hit the skids harder. But that is not the expectation across Canada. The growth may not be record numbers this year, but it will still be strong.
The Canadian economy and in specific Albertan economy is flourishing due in part to the oil country in
Alberta
. Most people are not aware that the oil fields in Canada hold reserves of about 3 times the size of
Saudi Arabia
. Now tell me that won’t rock the boat in world economics. The technology has finally caught up to allow these reserves to be tapped efficiently.
The strong exchange rate, and reduced home prices, combined with a growing Canadian economy mean that they won’t be in the shadows for long. We have seen many people taking advantage of these conditions and purchasing 2nd homes here. That won’t stop too soon.
Regarding Politics, oooh, there’s a tough subject to discuss in any room. I never brought it up, but, was asked about it a lot. The consensus was anyone would be better than the current administration. The big question wasn’t who would be President, but how would it affect the economy. Whether you like the current administration or not, there is no mistaking that public view outside our borders is not favorable of it. Despite this, it was also interesting to hear that many people there envy our political system. And favor it over theirs. Interesting thoughts.
The most interesting discussions came on cross border perceptions. I had to agree with most. Canadians are far more aware of what goes on in the US than Americans are about what goes on in
Canada
. This comes from years of being reliant on the
US
as a trade partner. They import a lot of goods from the
US
. It is in there interest to know what is going on. The lack of US knowledge about Canada isn’t a slight to
Canada
however. There seems to be a tremendous lack of knowledge about all aspects of the world outside the
US
. We as US citizens take a lot for granted, because we have the good fortune of living in a free society that has dominated world culture for years. Despite this, we have a lot to learn from the Canadians about looking beyond our borders.
Yes I know this really wasn’t about real estate, but perceptions of the US and the
US
economy do affect us all. The positive aspect regarding real estate is that the Canadians know there are good deals to be had. When will the American public wake up to that fact as well? There is a misconception about the exchange rate. Our dollars will go just as far as they did last year, if you are spending them here in the
US
, in fact, further since housing prices have decreased. The Canadians know it. We now have some of the lowest interest rates that we have had in years, yet people are still waiting to see what is going to happen. If you are a bargain hunter, now is a great time. If you aren’t, there are easy deals to be made for the prudent shopper.
Adam Tarr, ABR, ePro,Associate Broker
RE/MAX Excalibur
Scottsdale, AZ
Your Phoenix Area Real Estate Source
480-236-7374
Adam@WeAreAZRealEstate.com
www.WeAreAZRealEstate.com
