Real Estate Optimism Rises to Highest Level Since 2017 Amid Strong Housing Demand
As coronavirus vaccines continue to be rolled out across Canada, it appears that the country’s already-booming real estate market is expected to continue its historic trajectory.
The latest Bloomberg Nanos Canadian Confidence Index, which measures overall financial health and economic expectations via telephone surveys, rose to 55.1 last week – the highest reading since March. That is certainly a positive note for Canada’s economic recovery, especially since 49.2% of respondents anticipate that home prices will continue to rise over the next six months, the highest share recorded since 2017.
Historically low interest rates, coupled with continued strong demand for more spacious housing is causing home sales and prices to reach record highs. In the meantime, Prime Minister Justin Trudeau has vowed to keep fiscal stimulus flowing in order to uphold the economic recovery, while numerous income supports have been keeping Canadian households on a cash cushion.
Similarly, Nanos Research also found that Canadians’ economic outlook has also improved, with 23.7% of respondents revealing their anticipation that the country’s economy will be stronger over the next six months, amounting to an 18.1% increase since November. The outlook on personal finances remained relatively unchanged from the week prior, with 14.9% of respondents noting that they were better off this year compared to 2019, while 25.7% said they were worse off.
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.
