Consumer confidence has been on the rise in Canada since late March, possibly bolstered by the federal budget, which was presented on March 22. The latest Bloomberg Nanos Consumer Confidence Index reached its highest level this year just after the budget came down. According to Bloomberg, the main positive driver for the optimism about the economy was the view that real estate would continue to increase in value. Canada’s low dollar, which benefits exporters, and the government’s promised deficit spending, are also seen as positive forces at work in the economy.

A couple of other important pieces of positive economic news have come out in just the last few days. While they will not be reflected in any consumer confidence index for some time, they are perhaps evidence of forward momentum.

Statistics Canada reported that the unemployment rate fell by 0.2 percentage points in March, with 41,000 jobs added to the economy. On the same day, Scotiabank Economics released its latest Global Auto Report, which is positively exultant about the strong showing of Canada’s auto industry in 2016. This industry is driving Canada’s industrial “revival,” says the report, with exports and sales of cars at their highest levels in years. And yes, that lower Canadian dollar plays a big part in the success : according to Scotiabank, every car manufactured in North America now contains nearly US$1,600 in Canadian-made parts, the highest amount in years, and it is in part because they are cheaper to purchase.

Another survey, meanwhile, this one carried out by Leger for RE/MAX before those latest employment numbers came out, found very high levels of optimism among younger Canadians, aged 18–34, regarding their future prospects. More than three-quarters (78.5%) of this all-important demographic said that owning a home is something they want and, more importantly, believe to be attainable, even with high real estate prices in Toronto and Vancouver.

The older generation has seen significant appreciation in the value of their homes, while the younger generation is entering the market at a higher price point. This means first-time buyers in Canada’s higher-priced markets often need a little help, which many parents are in a position to offer.

An even higher majority, 81.6%, believe that getting a good job in their field is also attainable. A good thing, for how else could they afford to buy a home?

Actually, the optimism of the young is based in part on an expectation of help from their elders : 37% expect help with the down payment from either a family member, i.e. the parents, or a friend. Those parents would more likely be in a position to offer that help if they themselves were homeowners and had seen “significant appreciation” in the value of their home. First-time buyers, who are entering the market at a higher price point, may need, and definitely do expect, help from the parents.

The survey did find that a somewhat less enthusiastic majority (68.2%) agree that saving their money for a down payment is a priority.

Younger Canadians Are Optimistic About Job Prospects & Home Ownership by Josephine Nolan | Condo.ca