Despite several forecasts of a coming price drop, Canadian households remain upbeat about the housing market.
Even as the country enters a second wave of COVID-19 cases, polls show that about 44% of respondents expect the value of real estate in their neighborhood will rise in the next six months. The poll by Nanos Research found that the share of Canadians who expect home prices to drop has fallen to 27%, the lowest level since mid-March.
The residential real estate market has been a bright spot in Canada’s economic recovery from COVID-19. Last month, home prices and sales reached record levels due to pent-up demand, low interest rates and tight inventory. Although the market has defied expectations, economists predict the gains will peter out as COVID-19 cases rise and restrictions are re-imposed.
Strong expectations on housing have been shoring up overall consumer confidence levels, the polling suggests, helping offset declining sentiment around the broader economic outlook as rising virus cases prompt local authorities to impose new social distancing measures.
The same poll found that the share of Canadians who expect the economy will strengthen over the next six months dropped to 19%, the lowest level since June, after Prime Minister Justin Trudeau warned parts of the nation are already experiencing a second wave of cases.
Every week, Nanos Research surveys 250 Canadians for their views on personal finances, job security and their outlook for the economy and real estate prices. The results have been little changed since the end of August after recouping more than four-fifths of its pandemic-related losses between May and July.
