Home prices, Triangle unemployment rise, consumer confidence drops
Posted June 26, 2012
Economic headwinds continue their presence here in the US. However, we’re also experiencing a silver lining of sorts among the negative economic news as well.
The S & P Case-Shiller report for April indicates that home prices increased 1.3%. The increase was the third positive month in a row, but year over year data still indicates a 1.9% decline in home prices across the nation. That decline however was lower than economists’ were expecting for the report, and the overall feeling is that housing fundamentals are truly beginning to improve. Eligible borrower availability, foreclosures and rigid underwriting guidelines still head up the list of concerns as it relates to the return of a healthy housing market.
Consumer Confidence fell in June to a reading of 62, which is now the lowest reading we’ve seen since January, 2012. Global uncertainty and its impact on the US, as well as domestic concerns continue to weigh on US Consumers.
The Triangle Unemployment Rate is back on the rise again, moving to 7.8% for the month of May. That figure is up from a 7.5% reading in April. We’ll be keeping an eye on Triangle Employment as we digest the US June Employment report which will be out next Friday.
Even with the headwinds, falling gas prices and rising home prices are two positives that we’re currently enjoying here in the Triangle. Lower gas prices and higher home values are two areas which translate nicely into improved consumer confidence.
Let’s hope that both maintain their strength as we head through the summer and into fall. Mortgage Rates have remained fairly flat recently, and continue their strong presence within Triangle Housing.