Confidence in Real Estate Shattered

Canadian consumer confidence in the economy and in real estate are negative and have not started to improve yet.

While Mortgage Sandbox analysis typically examings demand factors, supply factors, and government intervention, sentiment is the final key component.

Sentiment either brightens the outlook or casts a shadow over it. For 2023, there is a long shadow cast over the Canadian housing market. Only one quarter of Canadians believe property values will be higher in 6 months. That means buyers feel less urgency and properties should sit on the market longer. All of this makes sentiment somewhat of a fulfilling prophecy.