Canadians Remain Optimistic About Housing Even as the Second Wave of COVID-19 Starts

According to the latest Nanos Research for Bloomberg News poll, Canadians are increasingly optimistic about housing, even as the country finds itself in the grips of the second wave of the COVID-19 pandemic. In the survey, about 44% of respondents expect the value of real estate in their neighborhood will go up over the next months. The highest percentage since March 13th, which is prior to the pandemic shut down started and one of the best reading in nearly seven years. Last month, home prices and sales reached a record from pent-up demand combined with low interest rates and tight inventory. Although the market has defied expectations, economists predict the gains will peter out in line with other data that shows a slowdown in activity as cases rise and restrictions get re-imposed. When asked if the current upward trend in housing market could continue, Benjamin Tal, Deputy Chief Economist at CIBC said in a phone interview “Absolutely not. As we enter winter, things will slow down economically, and we will see it in the housing market. It doesn’t mean it will go down, but it will stabilize and maybe soften a bit.”