Confidence that real estate prices will continue to gain has hit a 7-month low according to the latest index from Bloomberg/Nanos.

Its weekly poll shows a reduction for the economy overall to 55.82 from 56.24 a week earlier while the expectations sub-index for the next 6 months shows weaker sentiment for the Canadian economy and real estate prices.

“The proportion of Canadians who believe that the value of real estate will increase has hit a seven month low,” said Nanos Research Group Chairman Nik Nanos. “Canadian consumer confidence weathered the Great Recession on the twin pillars of a booming oil market and real estate. The price of a barrel of oil remains in the doldrums and real estate perceptions are increasing fragile.”

Those who think real estate prices will be higher in 6 months fell to 34.95 per cent last week from 38.10 per cent a week earlier.

Overall, Ontario and the Prairies are the only regions to increase confidence with middle-income earners least confident nationally.

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