- Less than one-in-ten Canadians believe we'll avoid a recession
in the next 12 months
- Fewer respondents in Q4 planning to wait for home prices /
interest rates to drop before buying or selling a house than in
Q3
- Vast majority of employed Canadians say technology plays an
important role in their day-to-day professional life, with many
labelling it "very important or critical"
- Nearly half of Canadians think that lawyers and notaries would
benefit from incorporating more technology into their services
TORONTO, Jan. 17,
2024 /CNW/ - Canadians remain seriously concerned
about the state of the economy heading into 2024, but their
patience for well-priced real estate opportunities has begun to
wane.
According to the findings of the Dye & Durham's Canadian
Pulse Report for Q4 2023, a survey of 1,003 Canadians on trends in
the economy, technology and real estate market conducted via the
online Angus Reid Forum, fewer Canadians say they are planning to
wait for house prices and interest rates to decrease before buying
a property, despite lingering concerns about the strength of the
economy. Only one-in-five (20%) Canadians say they plan to wait for
purchase prices to drop in 2024, and 21% plan to wait for interest
rates to decline - down from 24% and 23% respectively in Q3.
High interest rates continue to impact financial well-being
and spending patterns
Only 20% of Canadians feel better off
financially this year than last year, down from the 25% who thought
so in Q3. Conversely, the number of Canadians who say they are
worse off financially today rose to 44% in Q4 from 39% in Q3. High
interest rates and inflation have played a considerable role in
this, as Canadians are expecting they will need to spend more on
groceries (57%), gas (41%), insurance (auto, 30%; home, 28%) and
rent (25%) next year than they have in the past year.
Canadians are also now more pessimistic about the overall
economy in 2024, with 59% believing there will be a recession in
the next 12 months - considerably higher than 54% who expected as
much in Q3. Less than one-in-ten (9%) believe Canada will avoid a recession in the next 12
months, with 31% believing we're already in one.
"Inflation is cooling and interest rates are stabilizing, and
with that Canadians are telling us that they have renewed optimism
in the outlook for their housing plans," says Martha Vallance, Chief Operating Officer, Dye
& Durham. "It appears that many prospective homebuyers are
growing tired of trying to time the market, and pent-up demand
could lead to a long-awaited volume rebound for lawyers, realtors
and all those that serve real estate interests across the country
in 2024."
Positive signs for real estate market resurgence in
2024
The number of Canadians who say they plan to sell their
primary residence and purchase a new one in the next 12 months
increased modestly during the end of 2023, from 10% in Q3 to 12% in
Q4. Additionally, the number of Canadians who had previously left
the homeownership market in favour of renting but are now planning
to re-enter the ownership market in the next 12 months has
increased from 6% in Q3 to 8% in Q4. Finally, the number of
Canadians who plan to buy an investment or income property in the
next year has slightly increased from 8% in Q3 to 9% in Q4.
While Canadians appear more bullish on their real estate plans,
they do not anticipate the cost of home ownership to be in their
favour in 2024. More than half (52%) expect prices to increase in
their areas in the next year, with 16% believing they will increase
significantly. Most Canadians are also skeptical about mortgage
rates becoming more manageable, with less than one-in-five (19%)
saying they are expecting mortgage rates to decrease in the next
year.
Canadians have embraced technology in their jobs ─ and expect
their service providers to do the same
Technology has become
a crucial part of our work lives as the majority of employed
Canadians (87%) say it plays an important role in their day-to-day
professional life, with two in three describing it as very
important or critical. It is evident that people are benefiting
from the use of technology and expect the same level of convenience
and efficiency from the services they receive. Analytics (62%),
Cloud Computing (60%), 5G (53%) and AI (45%) are the technologies
that Canadians say will become increasingly important to their jobs
over the next five years.
Nearly half (45%) of Canadians think that lawyers and notaries
would benefit from incorporating more technology into the services
they provide them/how they provide those services. Doctors (64%)
and government services (63%) are the skilled service providers
Canadians think would benefit most from greater adoption and
deployment of technology in the services they provide.
"The role that technology plays in service delivery has moved
beyond that of an enabler and an equalizer – it has become an
expectation for Canadian consumers," says David Nash, Chief Product Officer, Dye &
Durham. "Skilled providers like notaries and lawyers that find ways
to leverage technology to remove friction and improve service
delivery will stand out from the pack, building lasting customer
preference that will improve their bottom line."
About the Survey
Conducted quarterly, the Dye &
Durham Canadian Pulse Report is designed to uncover trends and
insights into Canadian sentiment surrounding three key areas: the
economy, technology and the real estate market. The findings of the
report are the result of a survey conducted by Dye & Durham
from November 8-9, 2023 among a
nationally representative sample of n=1,003 Canadians who are
members of the online Angus Reid Forum, balanced and weighted on
age, gender, region and education. For comparison purposes only, a
probability sample of this size has an estimated margin of error
of +/- 2.5 percentage points, 19 times out of 20. The survey was
offered in both English and French.
About Dye & Durham Limited
Dye & Durham
Limited provides premier practice management solutions empowering
legal professionals every day, delivers vital data insights to
support critical corporate transactions and enables the essential
payments infrastructure trusted by government and financial
institutions. The company has operations in Canada,
the United
Kingdom, Ireland, Australia, and South Africa.
Additional information can be found at www.dyedurham.com.
SOURCE Dye & Durham Limited