According to weekly telephone polling, Canadians' sentiment that real estate prices are on the rise is at a three year high. This is step in the right direction for economic recovery.
Almost half of the participants (49.2 percent), predict home prices will increase over the course of the next six months. This is the highest level it has been since May 2017.
Nik Nanos, chief data scientist at Nanos Research, pointed to the federal government’s distribution of COVID-19 vaccinations as a leading influencer of the trend.
It's been just over 9 months since the country first shut down its economy in response to COVID-19, resulting in a collapse in consumer confidence.
The vaccine rollout, though in its infancy, has restored some hope that pandemic's end is near even with cases continually climbing. Ontario and Quebec has responded with stricter regulations in hopes of curbing the spread.
Historically low interest rates and increased demand for more spacious housing are pacing Canadian home prices and sales to new highs. The Liberal government has committed to continue fiscal programs to support the recovery.
“Consumer confidence in Canada continues to gain strength with news on vaccines,” Nik Nanos, chief data scientist at Nanos Research, said in the report. “Forward perceptions on both the strength of the economy and the value of residential real estate gained a full five percentage points in the past four weeks of tracking.”
Nanos Research conducts weekly polls and surveys 250 Canadians for their thoughts on personal finances, job security, the economy and real estate prices.
