Nearly half of Canadians are expecting home prices to fall within the next six months
While Canadian consumer confidence is steadily recovering, the same cannot be said about the public’s views towards the housing market, according to the latest Bloomberg Nanos Canadian Confidence Index.
Polling found that 48.54% of respondents are anticipating a decline in home prices within the next few months – a level approximately three times above the average for this metric, Nanos Research said.
“Even as sentiment has improved around the economic outlook and personal finances, expectations around real estate are weakening,” Nanos said.
The overall confidence index went up for the fourth consecutive week, reaching 39.3.
“While the index remains near its worst-ever readings recorded last month, the rise in confidence in recent weeks suggests negative sentiment may be finding a floor amid talk of reopening the economy,” Nanos said. “Regionally, the gains in sentiment have been mostly in Western Canada, aided by a recent rebound in oil prices and relatively fewer coronavirus cases.”
Overall confidence remained at near-record lows in Ontario and Quebec, however.
Sentiments toward personal finances over the past year have soured to 36.7%, from 42.3% last month.
There was less pessimism towards the economy, although the overall level was still quite high. Around 73% of respondents said that the economy will worsen within half a year, down from 80% last month.
