|A pump jack and a house northwest of Calgary. Experts in the oil industry seemed not to see the fall in prices coming. Could the same thing be happening again with house prices? (The Canadian Press)|
Recent reassuring comments about the Canadian housing market remind me of similar blandishments when oil prices began to fall.
I wouldn't want to overemphasize the parallels between houses and petroleum. Indeed, there are many differences in the two markets, which I will expand upon in a moment.
But first the similarity. It is that, just as with oil, so many of the people we expect to know what is happening refuse to admit that house prices can go through big declines as well as big increases.
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