However, recent market indicators show real estate sentiment improving
Consumer confidence in Canada remains below pre-pandemic levels four months after COVID-19 shuttered much of the economy, according to Bloomberg.
The latest figures from the Bloomberg Nanos Canadian Confidence Index revealed that much of the country is still relatively cynical about the prospect of a speedy recovery, with more than half (59%) of respondents believing that the economy will worsen over the next six months. Meanwhile, Bloomberg reported that merely 14% of respondents say they are “better off financially than they were a year ago.”
Read more: Nanos: Consumer confidence in housing market still low
Additionally, around 16% said that they feel “insecure or somewhat insecure” about their employment – a figure that had peaked at 25% in April.
The numbers reflect warnings from the Bank of Canada of a potentially slow rebound from the economic impact of the pandemic. Last week, the BoC said that it “expects the economy’s recuperation to slow as the pandemic continues to affect confidence and consumer behaviour and as the economy works through structural challenges.”
On the other end of the spectrum, however, Bloomberg reports that real estate sentiment is improving “in line with recent housing-market indicators that show a strong rebound in demand.”
“The share of respondents anticipating price increases has more than doubled since May, to 24%,” Bloomberg said in its report. “That’s the highest since the early days of the crisis, but still well below pre-pandemic levels averages closer to 40%.”
