It is refreshing to read a positive headline after 36 months of doom. I was extremely pleased to read “U.S. Consumer Confidence Reaches Highest Level Since September 2008” article.
The report includes details on this month’s major spike of U.S. consumer confidence which is absolutely necessary if we ever want to see an end to this recession. We have been told by all the pundits in the news that when consumers feel confident again that they will have their jobs and that their investments will come back, then they will buy primary homes, second homes and it’s especially true for luxury homes. We in the real estate industry have all been looking for the slightest sign of this optimism.
The article points to a reduction in jobless rates as on of the major contributors to the spike. That coupled with a multitude of positive economic news can be given most of the credit for the spike in confidence.
From a real estate point of view, I think we should be encouraged, but at the same time cautiously optimistic. An important statistic from the report measures the confidence level of consumers in regard to investing in real estate in the coming months. According to the report, 44% of polled consumers said that they think the next month will be a good time to buy real estate. This was a 3% increase from the previous month of December. In these economic times, any increase feels optimistic. If the recession really “ended” in the summer and consumers are supposed to “feel” like the recession is over 6 months later, then we are right on track.