For the third straight week, consumer confidence among Canadians soared to a record-high, as sentiment surrounding the country’s hot housing market continues to accelerate.
The latest Bloomberg Nanos Canadian Confidence Index reading for the week ending on April 2 registered at 64.13— the highest reading on record. The index has risen by nearly 8 points over the past two months, after hovering at around 56 prior to the pandemic. Views about the economic outlook also remained elevated, as approximately 41% of respondents expect Canada’s economy to be stronger over the next six months.
However, the most compelling result of the Nanos survey was the record-high sentiment regarding Canada’s real estate market. Sixty-seven percent of respondents anticipate home values in their neighbourhood will continue increasing, marking the highest reading for that question since polling began in 2008. In comparison, the question has averaged a reading of 38% over the past 13 years, and has only risen above 60% in the past month.
Despite the tightening of restrictions across the country amid a new wave of Covid-19 infections, confidence levels continue to remain high. Record-low borrowing costs have enticed potential homebuyers to enter the real estate market, causing home prices across the country to soar. However, the sudden and rapidly escalating housing boom has caused some economists to issue warnings, calling on policy makers to step in and help cool the market.
Information for this briefing was found via Bloomberg and Nanos Research. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.