Reflecting slow summer housing sales and talk of an impending bubble burst, Canadians who expect a decline in housing prices jumped by 8.5 per cent to 20.5 per cent, the most in one week in the history of the Bloomberg Nanos Canadian Confidence Index.
At the same time, the percentage of people who said that their financial situation improved over the past year rose 6 percentage points to 25.8 per cent. The change coincides with government measures to increase monthly payments to lower-income families, Bloomberg reports, and Prime Minister Trudeau’s new child benefit payments.
“Fluctuations . . . on personal finances and real estate suggest Canadians are cross pressured – on the one hand taking the newly changed Child Benefit but increasing concern about the value of real estate,” said Nanos Research Group Chairman Nik Nanos.
Still, 41.4 per cent of respondents reported feeling positively about real estate, down slightly from 43.7 per cent last week. 36.3 per cent of respondents thought that the status of real estate would stay the same, also falling from last week's result of 41.6 per cent.
The overall sentiment about the economy, however, remained fairly buoyant.
“While households are apparently reacting to policy attempts to mitigate the housing bubble, there has been a 15-month uptrend in the hiring intentions of Canadian businesses that could be attributed to policy attempts to jump start a sustainable recovery. The translation of those intentions into actual labour-market gains could eventually retake center stage”, Bloomberg economist Robert Lawrie.
65 per cent of respondents felt positive about their job security, people aged 40 to 49 were more confident than they've been in two years at just over 60 percent, and most people – 44.1 per cent – think that the economy won't have changed much in six months.
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