As economic and housing market indicators have improved over the past couple of months, so too has homeowner sentiment.
The second in a series of four surveys conducted by Mortgage Professionals Canada has found improvements in homeowner confidence in August compared to July.
For one, the survey noted an increase in the percentage of non-owners who expect to purchase a home in the coming year, from 7% as of year-end 2019 to 16% in August. Similarly, there was a substantial drop in non-owners who said they would never purchase a home, from 32% at the end of 2019 to 19% in August.
Optimism in the economy in the coming 12 months and the percentage of those who agree Canadian real estate is a good long-term investment both increased since July, the report found.
“We’re encouraged by the new survey data, which indicated that confidence in the housing sector improved during July and August,” said Paul Taylor, President and CEO of MPC. “As many Canadians became more comfortable with our new business operating environments, optimism abut future economic activity appears to be buoying housing market activity and expectations for future purchases.”
The latest survey also found an increase in homeowners who believe now is a good time to buy a home or condominium (with an average rating of 6.18 in August, up from 6.05 in July and 5.82 at year-end 2019). A score of 8-10 signifies strong agreement and a score of 1-3 signifies strong pessimism.
Consumers are also more likely to expect a rise in home prices since July (with an average score of 6.46 vs. 5.94 in July).
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Source: Steve Huebl – Canadian Mortgage Trends