{"id":6809,"date":"2015-03-25T05:51:23","date_gmt":"2015-03-25T10:51:23","guid":{"rendered":"http:\/\/olduvai.ca\/?p=6809"},"modified":"2015-03-25T05:51:23","modified_gmt":"2015-03-25T10:51:23","slug":"the-canadian-housing-bubble-has-begun-to-burst","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=6809","title":{"rendered":"The Canadian Housing Bubble Has Begun To Burst"},"content":{"rendered":"<h3 class=\"title\"><a href=\"http:\/\/www.zerohedge.com\/news\/2015-03-24\/canadian-housing-bubble-has-begun-burst\" target=\"_blank\">The Canadian Housing Bubble Has Begun To Burst<\/a><\/h3>\n<p>Don\u2019t look now but slumping crude prices are hitting the Canadian housing market like a freight train.\u00a0<strong>Energy accounts for 10% of Canadian GDP and around 25% of exports and the swift fall in oil prices is having a profound effect in the nation\u2019s oil producing regions. Take Calgary for instance, where single-family home sales fell 34% last month.\u00a0<\/strong>As the following chart shows, Alberta derives some 30% of its provincial revenues from energy royalties and as one TD analyst quoted by the\u00a0<a href=\"http:\/\/calgaryherald.com\/business\/real-estate\/calgary-posts-highest-new-home-price-growth?__lsa=efa5-3dbc\">Calgary Herald<\/a>\u00a0recently noted, \u201cthe effects of significantly lower oil prices had already turned up in resale activity, with sales in Calgary and Edmonton down more than 40 per cent and 30 per cent respectively, from October to January [and] as resale activity slows, prices usually follow.\u201d<\/p>\n<p><a href=\"http:\/\/www.zerohedge.com\/sites\/default\/files\/images\/user92183\/imageroot\/2015\/03\/Alberta.jpg\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/www.zerohedge.com\/sites\/default\/files\/images\/user92183\/imageroot\/2015\/03\/Alberta.jpg\" alt=\"\" width=\"565\" height=\"373\" \/><\/a><\/p>\n<p>Depressed crude prices will create a $7 billion annual revenue shortfall for the province while GDP growth, which had been running at around 4%, is expected be just under half that this year, with<strong>some analysts predicting the economy will contract.<\/strong>\u00a0Here\u2019s CIBC\u2019s outlook for instance:<\/p>\n<p><a href=\"http:\/\/www.zerohedge.com\/sites\/default\/files\/images\/user92183\/imageroot\/2015\/03\/CIBC.jpg\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/www.zerohedge.com\/sites\/default\/files\/images\/user92183\/imageroot\/2015\/03\/CIBC_0.jpg\" alt=\"\" width=\"600\" height=\"234\" \/><\/a><\/p>\n<p>The Alberta government\u2019s own assessment of the economic situation is deteriorating rapidly.<\/p>\n<p>From the Alberta\u00a0<a href=\"http:\/\/www.finance.alberta.ca\/publications\/budget\/quarterly\/2014\/2014-15-3rd-Quarter-Fiscal-Update.pdf#page=11\">fiscal update<\/a>:<\/p>\n<p>&nbsp;<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Canadian Housing Bubble Has Begun To Burst Don\u2019t look now but slumping crude prices are hitting the Canadian housing market like a freight train.\u00a0Energy accounts for 10% of Canadian GDP and around 25% of exports and the swift fall in oil prices is having a profound effect in the nation\u2019s oil producing regions. Take [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[1082,2693,103,195,3575,1784,353,406,1775],"class_list":["post-6809","post","type-post","status-publish","format-standard","hentry","category-economics","tag-alberta","tag-calgary","tag-canada","tag-debt","tag-deficit-spending","tag-exports","tag-gdp","tag-housing-bubble","tag-oil-price-collapse"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/6809","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6809"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/6809\/revisions"}],"predecessor-version":[{"id":6810,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/6809\/revisions\/6810"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6809"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6809"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6809"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}