Six weeks into the new year the topic of conversation in This Week in Real Estate….Consumer Confidence. Below are a few of the highlights from the second week in February that influence our business:
* Consumers’ positive financial attitudes a good sign for housing. The number of respondents who said now is a good time to buy a home rose three percentage points to 67%, according to the results of Fannie Mae’s January 2015 National Housing Survey. The share of consumers who believe now is a good time to sell a home similarly increased to 44%, tying an all-time survey high. The January data saw more people looking to buy a home than rent – 66% of those survey said they would buy if they moved, while the share of those who said they would rent dropped five percentage points to 29%. “Consumers are as positive about their personal finances at the start of 2015 as they have been since we launched the National Housing Survey in 2010,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. Full Story…
* Deloitte consumer spending index hits a 51-month high. The Index tracks consumer cash flow as an indicator of future consumer spending. “The Deloitte Consumer Spending Index increased in January, hitting a 51-month peak,” says Daniel Bachman, Deloitte’s senior U.S. economist. “The increase is due to positive contributions from all four components of the Index. The sharp drop in unemployment insurance claims is in line with a steady recovery in the U.S. labor market and augurs well for continued increased consumer spending. Additionally, January gas prices decreased 41% from this time last year, to a national average of $2.12 per gallon. That translates into an extra $994 in consumers’ pockets annually.” Full Story…
* Consumer confidence at highest level in over a decade. Two recently released reports reveal that the American public is starting to feel much better about the U.S. economy. The University of Michigan’s Survey of Consumers showed that consumer optimism reached the highest level in the past decade in the January 2015 survey…Consumers judged prospects for the national economy as the best in a decade, with half of all consumers expecting the economic expansion will continue for another five years. The anticipated strength in the overall economy has been accompanied by more favorable income and employment expectations. Full Story… http://www.keepingcurrentmatters.com/2015/02/10/consumer-confidence-at-highest-level-in-over-a-decade/
* Purchase applications suggest rising new home sales. “On the strength of an improving labor market and low interest rates, January new home sales were up nearly 30 percent from December,” said Lynn Fisher, MBA’s Vice President of Research and Economics. The Mortgage Bankers Association (MBA) said that based on this volume, which is not seasonally adjusted, it estimates that new home sales were running at a seasonally adjusted annual rate of 530,000 units. On an unadjusted basis MBA estimates that 39,000 new homes sold in January, up 39.3 percent from 28,000 new home sales in December. Full Story… http://www.mortgagenewsdaily.com/02122015_mba_new_home_sales.asp
Have a productive week!