As we welcomed in the new year This Week in Real Estate, confidence levels, both consumer and builder, reportedly have reached their highest points in more than a decade. Below are a few highlights from the first week of January that influence our business:
* U.S. Consumer Confidence Jumps to Highest Level Since 2001. Consumer confidence climbed in December to the highest level since August 2001 as Americans were more upbeat about the outlook than at any time in the last 13 years, according to a report from the New York-based Conference Board. Confidence index increased to 113.7 from a revised 109.4 in November. Measure of consumer expectations for the next six months rose to 105.5, the highest since December 2003, from 94.4. Share of Americans expecting better business conditions six months from now rose to 23.6 percent, the highest since February 2011, from 16.4 percent. “The post-election surge in optimism for the economy, jobs and income prospects, as well as for stock prices which reached a 13-year high, was most pronounced among older consumers,” said Lynn Franco, director of economic indicators at the Conference Board.
Full Story… https://www.bloomberg.com/news/articles/2016-12-27/u-s-consumer-confidence-index-increased-to-113-7-in-december
* Home Builder Confidence Ends the Year at Highest Point Since 2005. Home builders saw a significant boost in confidence after President-elect Donald Trump won the election, according to the National Association of Home Builders/Wells Fargo Housing Market Index. This increase brought builder sentiment up seven points to a level of 70, the index’s highest point since July 2005. “This notable rise in builder sentiment is largely attributable to a post-election bounce, as builders are hopeful that President-elect Trump will follow through on his pledge to cut burdensome regulations that are harming small businesses and housing affordability,” said NAHB Chairman Ed Brady. “The rise in the HMI is consistent with recent gains for the stock market and consumer confidence,” NAHB Chief Economist Robert Dietz said. “At the same time, builders remain sensitive to rising mortgage rates and continue to deal with shortages of lots and labor.”
Full Story… http://www.housingwire.com/articles/38764-home-builder-confidence-ends-the-year-at-highest-point-since-2005?eid=322520585&bid=1624886
* Foreign Investors Remain Bullish on U.S. Real Estate Despite Increasing Caution. Reflecting a lack of suitable global alternatives and a proven track record of steady returns generated by U.S. real estate, the latest annual survey of overseas investors by the Association of Foreign Investors in Real Estate (AFIRE) confirmed once again that the United States remains by far the world’s most popular destination for foreign real estate capital. An overwhelming 95% of respondents to the AFIRE survey said they planned to increase or maintain their level of U.S. investment, and 66% said their sentiment was unchanged or more optimistic about the prospect for U.S. real estate. In addition to securing its status as the leading U.S. city for foreign capital for a seventh consecutive year, New York City ranked as the world’s top city for foreign capital for the third year in a row. Los Angeles again ranked #2 among U.S. cities for the second straight year, followed by Boston, Seattle and San Francisco.
Full Story… http://www.costar.com/News/Article/Survey-While-Signaling-Caution-Foreign-Investors-Remain-Bullish-on-US-Real-Estate/187814
Have a productive week.