Bank Of Canada Survey Of Consumer Expectations Points To Pick Up In The Real Estate Market

Survey data indicates an increase in home-buying intentions from Q3 to Q4 2024, with higher percentages of respondents planning to move, sell, or purchase a home in the next 12 months.

The data summarizes trends in housing-related intentions for Q3 2024, Q4 2024, and their average:

1. Moving Intentions: Over 50% chance of moving in the next 12 months increased slightly from 21.11% in Q3 to 22.37% in Q4, averaging 18.91%.

2. Selling Intentions: Over 50% chance of selling in the next 12 months rose from 10.99% in Q3 to 13.52% in Q4, averaging 11.4%.

3. Buying Intentions: Planning or thinking about buying a house/condo grew from 14.21% in Q3 to 16.09% in Q4, averaging 13.64%.

4. Renters’ Buying Intentions: Renters planning to buy in the next 12 months increased from 16.94% in Q3 to 19.85% in Q4, averaging 16.78%.

In general, housing activity intentions trended upward from Q3 to Q4 in all categories.

This data is from the recently released survey of consumer expectations from Q4 2024.  It looks like consumers are feeling more optimistic about their spending plans, with growing confidence towards buying a home. While challenges like high prices, economic uncertainty, and elevated housing costs remain, many are people are adapting their shopping behaviors while looking forward to more favorable conditions. Encouragingly, more consumers now expect interest rates to decrease further, which is boosting plans to purchase a house or condo. Credit conditions are being perceived as easier even if the reality is lagging slightly. Although some uncertainty lingers, particularly around the timing of purchases, these trends suggest a brighter outlook for consumer towards participating in the housing market in 2025.  Good stuff!