Quote:
Originally Posted by fotze
Isn't it possible that there are some places that just don't follow "the fundamentals" as closely as others. Places with less diverse economies.
A very important metric in all of this that seems to be ignored is the employment. I don't think there will ever be a correction if oil remains at the price it's at. I think that number trumps all the inventory numbers. Yes, not everyone works in the industry but when the price is like this, we are underemployed and the excess money filters to all other places in the economy.
In Calgary the oil price is the most important thing, interest rates are second, mortgage rules are a distant third and inventory fourth.
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That is a great point. In an oil city the economics of housing are a little different, and prices can be a little inflated as a result. I don't work in oil and have clients who do and do not. When the price of oil is $85 they all feel a lot better than they do at $45!