Canadians are feeling increasingly pessimistic about the housing market and overall economy.
The consumer sentiment rating for Canada’s real estate market dropped to 54.45% during the week of May 13 from 58.94% the week prior, according to the Bloomberg Nanos Canadian Confidence Index (BNCCI).
The average this year has been 61.85%, while the 2008-2012 average is 40.60%.
Additionally, at 54.32%, the BNCCI measuring Canadians’ feelings about the economy is down from 57.24% four weeks earlier, also marking its lowest point in about a year and a half for the same week.
“Consumer sentiment is currently on a downward trajectory having hit a 17-month low,” said Nick Nanos, Chief Data Scientist at Nanos Research. “Views on the future value of real estate and the future strength of the Canadian economy have been weakening over the past few weeks.”
The BNCCI measuring economic sentiment is also down from a 12-month high of 66.42%, with confidence weakest in Atlantic Canada at 52.80%. It has averaged 56.63% since 2008, peaking at 66.42% in June and falling to a 37.08% nadir during the week of April 24, 2020, roughly a month after the COVID-19 crisis began during which time Canada was in throes of its first economic lockdown and stay-at-home order.
As for respondents who believe the Canadian economy is stronger, only 17.96% believed so, while 50.22% said it’s worse off, 26.28% don’t believe there has been any change, and 5.54% don’t know.
The personal finances index, which has averaged 18.57% between 2018 and this year, fell to 17.30% during the week of May 13 from 17.37% a week earlier, and from 17.82% four weeks prior. Only 17.30% of respondents described themselves as better off, while 38.49% said they’re worse off, 42.84% reported no change, and 1.36% weren’t sure.
Canadians job feelings about job security trended positively, with 46.74% feeling secure, 18.34% somewhat secure, 1.95% somewhat not secure, and 5.86% feeling unsecure. But 27.12% reported not knowing.
By province, Quebec reported the most optimism during the week of May 13 about Canada’s economy at 56.26%, followed by British Columbia at 54.26%, Ontario at 53.98%, the Prairies at 53.24%, and Atlantic Canada.
However, every province is down from the previous week: Quebec reported 59.28%, followed by Atlantic Canada at 55.56%, the Prairies at 55.18%, and both Ontario and BC reported 54.98%.
