Photo: Adam Jones/Flickr
Although 2014 certainly saw its share of broken records for home prices across the country, the results of a new poll from Nanos Research and Bloomberg points to less optimism about the future of the Canadian real estate market.
The number of respondents who believe home prices will continue rising fell to 31.1 per cent last week, from 47 per cent in the July survey. It’s the lowest level seen among Canadian households since May 2013.
In this week’s Bloomberg Nanos Canadian Confidence Index, Nanos Research Group Chairman Nik Nanos also noted that perceptions of both the future strength of the Canadian economy and the value of real estate are five points below the six-year average.
He told Bloomberg News, “Any negative changes in real estate values coupled with low oil prices could be a one-two punch for Canadian consumer sentiment.” The pollster also suggested that the repeated warnings of housing overvaluation has effected public opinion.
There are still some believers: 31.1 per cent predicted house prices would rise. The poll also indicated 52.79 of respondents forecast prices would stay the same, 13.45 said prices would drop and 2.69 didn’t know.
The plunge in oil prices has not gone unnoticed by the big banks.
In a report released by TD Economics on December 17, 2014, the bank suggested Calgary’s housing market was “particularly vulnerable” to an economic slowdown.
The provincial outlook also stated that “provided that oil prices begin to grind higher later next year, we do not expect a major shake-up in job and housing markets relative to our October forecast in the oil-producing provinces of Canada.”