Canadian consumers are feeling more confident about the economy as the country’s housing market stabilizes.
The Canadian Confidence Index, which measures consumer sentiment, has risen to its highest level since June 2022.
The index is currently at 50.4, the fifth consecutive weekly increase. It began to rise after the Bank of Canada paused its interest rate increases in March, a development that has led the housing market to stabilize after a steep drop in activity over the past year.
A score of 50 of higher indicates that positive and negative views are about equal. The index’s lowest point over the past year was a score of 42 recorded in October 2022.
The main reason for the uptick in consumer confidence is the view that home prices across Canada have bottomed.
Among Canadians polled, 75% said they expect home prices will either rise or stay the same over the next six months.
The latest data shows that the average home price in Canada rose 0.2% to $709,000 in March, the first monthly increase in a year.
A lack of adequate housing supply has led many analysts to suggest that home prices and sales will gain momentum in the second half of this year.
The Bank of Canada has said that it will hold its trendsetting overnight interest rate at its current level of 4.50% if the economy continues to perform as expected.
Canadians are also growing more positive about their job security and personal finances, according to the latest poll.
Each week, Nanos Research surveys 250 Canadians for their views on finances, job security, the economy, and real estate prices. The results are first published by Bloomberg News.
