The market is facing some uncertainty surrounding the impending end of stimulus support
Canadian homeowners’ optimism towards the economy and housing market has considerably weakened over the past few weeks, according to the latest edition of the Bloomberg-Nanos Consumer Confidence Index.
As of the week ending Aug. 20, the index was at 64.20, down from 65.98 four weeks prior and the 12-month high of 66.42.
The economic mood index as measured among homeowners was 62.87, versus 66.79 four weeks ago. Among renters, the index was slightly better at 66.83, compared to 65.13 a month ago.
“With increasing speculation about a fourth wave and the scaling back of stimulus support expected this fall, perception on the future strength of the Canadian economy continues to decline and is now about 10 points lower compared to four weeks ago,” said Nik Nanos, chief data scientist at Nanos Research.
Read more: The key questions on the Canadian housing market’s current trajectory
The share of Canadians who believe that the economy will be stronger in six months’ time was 38.99%, while 24.67% believe that it will be weaker by then and 29.13% are not anticipating any major changes.
Approximately 55% of respondents are expecting the value of homes in their respective neighbourhoods to increase in the next six months, while 10.83% are preparing for a decline in prices. Another 31.23% believe that prices will remain static during that period.
