The housing market has once again kept optimism high for Canadians. The Bloomberg Nanos Canadian Confidence Index is at its highest in four years and while many experts may sound a cautious note for real estate homeowners are less concerned. The index isn't just about housing; job security and other economic factors feature too, but it's the housing market that is driving the positive note. With confidence generally high there is no suggestion of a slow down in the market just yet.
Luxury brands have been increasing their presence in Canada over the past few years and the prediction is for more to come. Research shows low vacancy rates in the most sought after commercial neighbourhoods and it's calling for more malls. Jewellery and designer fashion are among the retail sectors demanding more space in cities and existing malls in Toronto and Vancouver are expanding to feed the demand. The rise in spending on luxury goods is not universal, but growing numbers of Canadians are moving up in income, often due to property investment rather than wages and tourism is also fuelling the demand.
New figures released by the National Association of Realtors show that the U.S. housing market is still struggling for recovery. The Pending Homes Sales Index fell 1.1% for contracts signed in June, a greater decline than had been expected. This follows a few months of growth. Other recent stats have also been disappointing; new home sales and housing permit applications were both down although resales were at an eight month high.