Consumers are growing concerned about the health of the property market, making it harder for brokers to complete sales.
A report by Bloomberg Nanos Canadian Confidence Index said 38% of Canadians believe housing prices will increase. This is a significant drop from the 46% in July.
“The months-long decline in consumer confidence could hopefully be a harbinger of a soft landing for the housing market and an easing of the growth in household credit,” said Bloomberg economist Robert Lawrie.
“Of note is the steeper drop in confidence among younger cohorts, who are less risk-averse and more likely to take on debt.”
Bloomberg added that 46% believe home prices will not move. A total of 13% believe values will dip, while just under 3% are unsure.
“Of note, the decline has been primarily fueled by dampening forward perceptions of the strength of the economy and the value of real estate” said Nanos Research Group Chairman Nik Nanos.
“Confidence in the energy rich Prairie provinces has hit a new 12 month low, although confidence in that region is still comparatively stronger than Quebec and Atlantic Canada.”
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