“Canadian investors are facing a long list of uncertainties, including tremendous volatility in both oil prices and the value of the Canadian dollar. The outlook should become more clear over the course of 2016,” Frances Donald, senior economist for Manulife Asset Management, said. “What is most interesting from the survey is the ongoing decline in the Canadian appetite to invest in their own home.”
The index fell to +16 – the lowest point since it dropped to +11 in during the financial crisis. The index fell three points year-over-year, with 26% of Canadians feeling they are in a worse financial position than they were two years ago.
“The two largest drops were in British Columbia (13 point decrease since November 2014) and Ontario (decreased six points in the same time period),” Manulife said in a release. “Canadians are also less likely to prioritize investing in their home in the near future (falling five per cent in the last six months).”
Another market that has been hard-hit in terms of investor confidence in Alberta.
Lamb Development Corp., one of the country’s leading condo developers, just announced it is delaying two condo projects in Alberta due to falling oil prices and unemployment issues.
“The situation in Alberta is worse than 2008,” Brad Lamb, known as Toronto’s condo king and for his humorous billboard ads depicting his face on a sheep’s body, told Bloomberg. “This is a unique event that is annihilating anywhere in the world that produces oil.”
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An increasing number of Canadians are hesitant to invest in housing according to Manulife’s Investor Sentiment Index.