From Euphoria to Normal
Recent Canadian consumer confidence figures from Bloomberg-Nanos re-confirm a downward trend in confidence and an even steeper decline in expectations for home values to rise.
What does this mean for real estate? It means that sentiment is weaker than it was half a year ago and that there is less upward influence on home values.
The people who do not expect home values to rise are likely to take a less aggressive stance in a bidding war.
While there is still very tight housing supply in most Canadian markets putting upward pressure on home values, consumer sentiment is one of the five key forces Mortgage Sandbox examines in its home price forecasts.
