Feeling chipper this morning? You’re not the only one. Canadian consumers are experiencing a mood lift as opinions on house prices and job stability improve.
According to the Bloomberg Nanos Canadian Confidence Index, which measures the economic mood of Canadians each week, consumer confidence rose to 58.5 in the past week up until November 1st, compared to 57.7 for the previous week.
More specifically, The Expectations Index, which measures views on the economy and real estate prices, sat at 57.5 for the week, a five-week high and up from 56.7 during the previous week.
This wasn’t the only upside reported by the Index. Consumer confidence in house prices continued to grow long-term, as the survey’s respondents who held a positive view of house prices hit 38.6 per cent, the highest level in three months.
As Canadians begin to show more faith in the housing market, their confidence in job security is also on the rise. The survey revealed that 65.3 per cent of respondents feel secure in their current position, compared to 64.4 per cent last week.
“Canadian consumer sentiment stabilized likely due to relief the U.S. fiscal standoff was resolved and rebounded in confidence that Bank of Canada policy will prevent asset deflation in the housing sector,” Joseph Brusuelas, a senior economist at Bloomberg LP said to Bloomberg.
The rise in consumer confidence appears to be reflected in the recent strong showings in some of the country’s major housing markets.
In mid-October, the Toronto Real Estate Board (TREB) announced that condo sales in the GTA were up 18 per cent compared to the same time last year. According to recent data released by the Calgary Real Estate Board (CREB), home sales increased by 17.72 per cent in October from the same month last year.
However, the Bank of Canada doesn’t share the same confidence as consumers, warning in October that the housing market is still at risk of a correction.