Bloomberg: Canadian Confidence Drops in Housing Market
With oil prices hitting all-time lows yet again this week, Nanos Research from Bloomberg found a statistical difference in the number of Canadians losing confidence in the housing market. In the summer of 2014, 47% of Canadians believed that housing prices would continue to increase, as opposed to just 31% in the latest survey.
“Perceptions on both the future strength of the Canadian economy and the value of real estate are five points below the six year average,” said Nanos Research head, Nik Nanos.
Bloomberg economist Robert Lawrie said the sharp drop in oil prices has essentially caused perceptions of the health of the housing market and the economy to be turned on their heads.
“Households in the Prairies, whose expectations earlier in the year were the most optimistic, have plummeted and are now lower than in the Atlantic provinces.Consumer attitudes toward job security and personal finances are drifting lower as well, adding to the likely negative impact on household consumption,” said Lawrie.
An update on Calgary: Over the past year, Calgary has had sales drop over 7.5%, while listings increased by 42%. As it stands, the markets have seem to set themselves up for a potential correction with the sharp declines in Oil.