BluefoxToday blog : The Conference Board says consumers more confident

The Conference Board says consumers more confident

That's music to a lot of ears. The widely-known index that measures consumer attitudes and buying intentions jumped 12.3 points in April, representing the best showing for it since November. Despite that, it would be premature to pop any corks yet and let it flow. The banking sector continues to wallow in deep trouble and the job market has seen much better days.

Still, it is a sign that sun is beginning to shine through gaps in the dark clouds overhead. The mood from the steady drumbeat of mortgage foreclosures to layoffs to corporate trouble is seemingly shifting, although cautiously, toward the belief that tomorrow has more to offer than today. This could actually be the onset of the eventual turnaround.

The real estate market that is largely responsible for the meltdown is bubbling with energy in many areas. Vegas home sales are improving, numerous California cities are witnessing steady increases, South Florida has attracted scores of first-time buyers and investors and Arizona, too, is joining in on the activity. There are other areas showing similar advances.

It's easy to see why. Mortgage interest rates are very appealing, so long as the applicant meets the still strict guidelines. And probably even more enticing are the prices that are reaching levels not seen for a long time. Southern Nevada values, for instance, have now dropped to where they were very early in the decade. Those days Sin City was considered home buyers heaven and it's turning into one again.

Housing dragged the economy into this and now it's slowly picking itself up off the mat and apparently has enough legs to gradually move forward. True, there remain serious imbalances in residential real estate that will take a while to cure, so any path to recovery will be at least mildly turbulent. But perhaps the first seeds for it have been sown.

 

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Provided by: 

Esko Kiuru
Mortgage, real estate and apartment industry analyst 

www.BluefoxToday.com - syndicated mortgage, housing and property management blog

eskokiuru@gmail.com
My cell: 702-499-1006

Comment balloon 8 commentsEsko Kiuru • April 28 2009 06:32PM

Comments

Consumer confidence was a bit of a surprise to many, but it does seem that folks are ready to believe. Maybe that will move enough of us.

Thanks,

Richard

Posted by Richard Byron Smith, NMLS #184479, Mortgage Loan Officer (Mortgage Loan Officer, Fairway Independent Mortgage Corporation NMLS #2289) almost 9 years ago

great article and some welcomed news !!

Posted by Carl Stars (Sutton Group About Town Realty ) almost 9 years ago

Hi Esko - Seeing an increase in consumer confidence is a welcome sight.  People tend to get back into the market when they feel like things are improving and we are seeing an increase in activity as a result.  There are a number of factors that contribute to this and most of them are related to initiatives taken by the "powers to be" that present some benefit to consumers.

Posted by Jon Wnoroski, Summit County Realtor (America's 1st Choice RH Realty Co., Inc.) almost 9 years ago

Esko, I am definitely seen this in my area.  This has been the busiest Spring that I have had in a few years.

Posted by George Souto, Your Connecticut Mortgage Expert (George Souto NMLS #65149 FHA, CHFA, VA Mortgages) almost 9 years ago

Richard,

Ready to believe is a good way to put it.

Posted by Esko Kiuru almost 9 years ago

Carl,

Hopefully the next report echoes the same.

Posted by Esko Kiuru almost 9 years ago

Jon,

Washington's actions are definitely helping here. Mortgage money wouldn't be under 5% if they didn't buy paper on the secondary market.

Posted by Esko Kiuru almost 9 years ago

George,

Great to hear that things are starting to stir.

Posted by Esko Kiuru almost 9 years ago

Participate