Consumer Confidence Index in April of 2010 rose to the highest level seen since September of 2008, according to The Conference Board Consumer Research Center, a private research group located in New York. The Consumer Confidence Index is a closely watched index that determines how American shoppers feel about the job market, businesses and the economy as a whole.
A reading of 100 indicates a strong growing economy, in April the reading increased to 57.9, the highest reading since September of 2008! All time low reading of 25.3 was reached in February of 2009.
Although April’s reading is far from a good reading, it is a small sign that consumers concerns about the economy are beginning to ease up.
According to Lynn Franco, Director of The Conference Board Consumer Research Center, “Looking ahead, continued job growth will be the key in sustaining positive momentum.”
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According to CNNMoney, a 20-city index shows that the value of U.S. homes has grown on a monthly basis in May 2009 for the first time since July of 2006.
Although, this is only a single month’s statistic, it could indeed be a sign that home prices are stabilizing. The Obama Administration has supported the housing market through many different programs and funding, which in turn has improved consumer confidence, which is an important factor for the housing industry. Stabilizing the market has been one of the primary goals of the administration through tax credits, foreclosure relief programs and taking control of Fannie Mae and Freddie Mac.
According to Mark Zandi, chief economist for Moody’s Economy.com, “It feels like the cycle is winding down,” he said. “I think it depends on how well the mortgage modification plan will work and I’m guessing it will work reasonably well.”
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According to the Conference Board of economists, the Consumer Confidence Index rose over 12 points in March up to 39.2, which is the highest that it has been since November!
As consumer spending counts for over 2/3 of the economic activity in the country, during times such as these, economists keep a close eye on the consumer confidence. When consumer confidence goes up, spending begins and the economy has a fighting chance to right itself once again.
Two of the biggest fears that could lead to a drop in consumer confidence are the rapidly rising unemployment rate and the swine flu outbreak! The swine flu could actually stall economic spending with the travel and tourism industry.
However, the real estate industry is showing positive signs of recovery, as prices seem to have hit bottom and the inventory is starting to diminish, especially here in Citrus and Hernando County Florida!
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On Wednesday, April 15, 2009, Donald Trump appeared on “Larry King Live”, boasting his new book, “Think Like a Champion”. During his interview with Larry King, Trump acknowledged that this is a great time to purchase real estate!
During these hard economic times, folks are losing their homes, their jobs and consumer confidence; however, with all the incentives that have been put into place by the Obama Administration, the housing inventory in Florida is finally starting to drop again. First time homebuyers are enticed by the low interest rates, the $8,000 tax credit and the affordable prices!
Be forewarned, these prices will not last forever, once the housing inventory begins to level out, prices will rise; according to Florida Governor Crist, You’ll be kicking yourself in two or three years if you don’t buy at today’s prices!
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