Brokers are poking holes in one analyst’s prediction that Canada’s housing market is in dire straits, accusing him of ignorance when it comes to Canada’s oil industry – and the economy’s reliance on it.
“He doesn't understand the oil market. The price of oil has plunged before and it will plunge again. Each time it bounces back. This time is especially different, though,” Hal Tagg of Realty Executives wrote on MortgageBrokerNews.ca. “This plunge was not cause by a global market, but rather by Saudi Arabia who wanted a larger market share.
“When the Saudis get a new agreement on production reductions that they want, effectively strengthening OPEC, then production will be reduced, and prices will bounce back up. $50 a barrel is not the new norm,” Tagg continued. “A 30 per cent price reduction in housing is laughable, even in Alberta.”
A flood of comments poured in following one pundit’s claim that Canada’s economy is one of the most at risk of a bubble burst in the world.