More and more Canadians are expecting home price increases within the next six months
Canadians have become progressively more confident towards the housing market over the past few weeks, according to the latest survey by Bloomberg and Nanos Research.
“Canadian consumer confidence is in positive territory with an upward trajectory,” said chief data scientist Nik Nanos. “The trendline is being driven by more positive views on the future value of real estate. Perceptions that the value of real estate will increase in the next six months is up seven points in four weeks.”
The Bloomberg-Nanos Canadian Confidence Index for the week ending May 26 registered at 53.00, nearly outstripping the current 12-month high of 53.15 and markedly higher than the 51.50 reading four weeks prior.
The share of Canadians expecting an increase in the value of homes in their neighbourhoods within the next six months shot up from 37.19% four weeks ago to 44.17%. Another 37.22% are anticipating steady prices, while just 14.66% are preparing themselves for price declines.
The rosier outlook was in line with Canada Mortgage and Housing Corporation’s (CMHC’s) recent projections, which called for prices steadily growing starting mid-2023.
“We expect price declines to conclude during 2023, but with the average price for the year ending below 2022 levels,” the Crown corporation said. “They would then start to recover as economic growth picks up and immigration increases. Shortfalls in housing supply would also contribute to higher prices and a lack of affordability.”
