Hot Property Market Stokes Rising Optimism for Canada Consumers

(Bloomberg) -- Canadians are the most bullish on real estate in at least a decade, weekly telephone polling shows, helping to stoke consumer confidence.

About 52% of respondents see home prices rising over the next six months, according to a survey by Nanos Research Group for Bloomberg News. That's the highest level for this question since regular polling began in 2008.

Rosy views on the housing market have helped drive overall household sentiment back to pre-pandemic levels even with the country dealing with a second wave of Covid-19 cases and new lockdowns. That bodes well for a quick rebound once restrictions are finally lifted.

Every week, Nanos Research surveys 250 Canadians for their views on personal finances, job security and their outlook for both the economy and real estate prices. The Bloomberg Nanos Canadian Confidence Index, a composite gauge based on a rolling four-week average of poll responses, rose for a sixth straight week to the highest since mid-February.

The index had plunged by a record one third in March and April, before beginning its climb back in May.

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Record-low interest rates and strong demand for more spacious accommodation pushed Canadian home prices to records levels in some places in late 2020. Toronto's real estate board reported last week that the average price for homes sold in Canada's largest city hit C$930,000 ($734,000) last year, the highest on record and up 13.5% from 2019.

But it's not just housing driving up sentiment levels. Canadians have become increasingly optimistic about the economic outlook, fueled by the vaccine rollout. They are also reporting improved personal finances and job security.