Improving views on housing follow an acceleration in the real estate market in recent months that reflects a shift by policymakers at the Bank of Canada to dim expectations for rate increases as it plays down concerns over rising household debt to focus on stimulating the economy.
“The crux of it is the rates environment,” said David Tulk, Chief Macro Strategist at TD Securities. “It’s that combined impact of seeing your own asset increase but also realizing that no one is going to take away the punch bowl.”
The Bloomberg Nanos Confidence Index measured 59.6 in the week ended May 16th - little changed from the previous reading of 59.5. The survey-based index hit a four-year high of 60.1 on April 25th. The index is calculated on scores derived from weekly polls on the outlook for real estate prices, personal finances, job security and the Canadian economy.