Canadians’ real estate expectations have slipped

Compared to last week, a smaller share of Canadians believe that real estate prices will be higher in 6 months.

The weekly Canadian Consumer Confidence Index from Bloomberg and Nanos Research shows that 40.33% of respondents expect rising home prices, down from 43.17% a week earlier.

There was also weaker sentiment on personal finances – the share who said they were better off than a year ago fell to 19.63% from 26.13% a week earlier – and a small decrease for those who believe the economy has improved over the past year (around 17%).

But there was a slightly stronger sentiment when asked about job security with a slight increase to 69.38% in the share of those who felt more secure in their job than a year ago.

The overall index declined to 57.83 from 58.55 but this is still above the average for 2019 so far (55.96).

By region, only BC and Atlantic Canada saw increases overall, but these were small gains. Renters increased sentiment while homeowners felt less confident.

There were no clear patterns in confidence by age or income group.

The weekly index is based on telephone-based surveys of Canadian consumers aged 18+.

Steve Randall