Despite a stream of negative economic news, most Canadians who've recently bought a home have confidence in their decision, according to a poll by the Canada Mortgage and Housing Corp.
A national consumer survey released yesterday said 90 per cent of recent home purchasers believed that a house is a good long-term investment. Almost 70 per cent of respondents also said they felt that this is a good time to buy a home.
BMO economist Robert Kavcic said he's not surprised that consumers might feel this way. "We've seen house prices come down across the country, and mortgage rates are bouncing around record lows," he said. "The cost of having a home right now looks very low relative to the past five or six years."
Consumers' confidence in the housing market is a good sign for the overall health of the economy, because it implies employment and low interest rates, said Kavcic.
But he cautioned that the country's job growth should also be taken into consideration. "Canada hasn't experienced an increased job growth," he said.
"Until we have that, we won't see sustained rebound in the housing market."
Kavcic said that this confidence expressed in the housing market can also be a sign that the worst of the economic crisis is behind us. "But we're not exactly on an upswing yet."
The survey of 2,500 people who had recently bought a home or refinanced or renewed their existing mortgage was conducted online from mid-March to mid-April.
