A new report shows a rise in optimism about finances and interest in the housing market
According to a recent study by Dye & Durham Ltd., Canadians are increasingly optimistic about their financial situations, with a growing interest in re-entering the housing market in anticipation of reduced interest rates.
The Dye & Durham Canadian Pulse Report, as reported by Financial Post, surveyed 1,015 Canadians in the first quarter of 2024.
It revealed that 28 percent of respondents feel they are in a better financial position than they were a year ago. This is an increase from 20 percent in the last quarter of 2023.
This sentiment is particularly strong among those aged 18 to 34. Conversely, the percentage of Canadians who believe they are in a worse financial position has decreased to 39 percent from 44 percent in the previous quarter.
Despite 39 percent of Canadians believing the country is in a recession, 20 percent are now less pessimistic about the economy, doubling the optimism from 9 percent in the fourth quarter of 2023.
Martha Vallance, Dye & Durham’s chief operating officer, noted the growing optimism among Canadians, indicating a robust foundation for potential economic growth.
Additionally, 26 percent of Canadians are now waiting for interest rates to fall before buying or selling property, up from 21 percent in the prior quarter.
Vallance suggests that expected interest rate cuts in the latter half of 2024 are likely to stimulate the housing market, potentially revitalizing it in the second half of the year and benefiting professionals such as lawyers and realtors.
Despite 87 percent of Canadians acknowledging the increased cost of housing compared to last year, more than half (53 percent) are willing to relocate for more affordable living options.
The proportion of Canadians planning to sell their primary residence to buy a new one remains unchanged at 12 percent, while those intending to purchase their first home this year has slightly decreased to 7 percent from 8 percent.
High interest rates continue to affect Canadians' spending, with many expecting to spend more on groceries (87 percent), gas (78 percent), auto insurance (69 percent), home insurance (70 percent), health insurance (53 percent), rent (58 percent), and retirement savings (36 percent) in the next year.
