Walks, Dogs, Invisible Forces?

As some of you may already know, we adopted an awesome dog named Mo last month. He is a beagle, about 8-9 years old and was from a shelter. He is basically a dog that no one loved except his foster mother. We think that in his past years he was heavily abused. He was very timid, shy and cautious. .......... . but now he is fully alive. He has the greatest personality and it has been very interesting to see him transform from the shy pup to the outgoing and loving beagle that he is.
We had a wonderful Christmas break with our family and also with Mo. He was very cautious when we brought him to our different families, but he eventually warmed up to everyone including my sisters pup named Sammy. Overall Christmas break was a time of relaxation, reflection and enjoying the season of the Saviors birth.
But something that also happened over break and is continuing to happen on our walks has been very puzzling and has made me contemplate many things. I am fully aware of spiritual warfare and I firmly believe that there are many things occuring around us in the spiritual realm more than we'd like to think about.
Mo and us take the same walk everyday, every morning and every night. There is one particular house on our walk that has me puzzled. As we approach this house and the empty lot beside it, Mo gets this look of terror and panic on his face. Since he was abused, we can easily tell when he is scared because his tail goes between his legs and he gets very low to the ground. Every stinkin walk he does this as we approach this empty lot and house. Just a couple of days ago he even sat down on the freezing, snow covered sidewalk because he was so scared. The only thing we can do is pick him us, hold him really close and whisper to him that everything is okay as we walk very quickly past the lot and empty house. After the house is out of sight we are on our merry way as if nothing happened.
What is going on? I've thought about many different options but I have only come to one conclusion. I think dogs can sense and see things that are going on that we just can't see. Is there a spiritual battle happening in that empty lot? Are the people that live in that creepy home filled with Satan? Is Satan trying to fill these people?
Yesterday on our walk when he again looked terrified I mustered up all of my faith, spoke in a deep forceful voice (I guess this is how I think you should talk when you're talking to spirits I guess...) "Leave him alone!" Instantly Mo got up and started walking. This morning on our walk, he wasn't even phased by this house. Did what I say really make a difference???
Regardless of what is actually happening this is making me realize how desperately I need to begin praying for my neighbors, the neighbors down from them and my entire neighborhood. It's also made me realize that our pets probably need to be given more credit than we realize.
One of my favorite quotes in "Prince Caspian" is below. It's during the scene when the bear is running after Lucy to eat her and then the dwarf Trumpkin spears the bear and responds to Lucy.

Susan Pevensie: Why wouldn't he stop?
Trumpkin: I suspect he was hungry.
Lucy Pevensie: Thanks.
Edmund Pevensie: He was wild.
Peter Pevensie: I don't think he could talk at all.
Trumpkin: You get treated like a dumb animal long enough, that's what you become. You may find Narnia a more savage place than you remember.