Canadians are starting to lose faith in their housing market. A gauge of real-estate sentiment dropped by the most in three years last week, according to telephone polling by Nanos Research Group. That dragged the broad consumer confidence Index down for a sixth week, as the recently elected Liberal government introduces measures to restrict mortgage availability in larger cities. Younger, heavily indebted families in Vancouver and Toronto pose a risk to Canada’s financial system because they may become unable to meet obligations in the event of another economic shock, Bank of Canada policy makers said this month. Finance Minister Bill Morneau identified similar problems the week before when he imposed tighter mortgage regulations to address “pockets” of overheating home prices in cities such as Toronto and Vancouver. Those messages seem to be sinking in. The share of respondents in the Nanos survey who see an increase in local real […]