Home sales, prices rise while consumer confidence dips
Posted March 26, 2013
Housing is certainly heating up this spring but we received juxtaposed data this morning showing that while home sales and prices are the beneficiaries of strengthening Triangle housing fundamentals, consumers are still concerned over jobs, commodity prices and domestic economic headwinds.
The S&P Case-Shiller Home Price Index reported that January home prices rose 8.1% in year over year data. The increase was the largest year over year percentage gain we have seen since June 2006. The trend is expected to continue this spring as demand has increased significantly and housing inventories have dropped here in the Triangle. New Home sales increased by 12% in year over data for February but dropped off by 4.6% from January 2013 sales figures. Higher consumer demand is expected to continue throughout the spring and summer buying and selling seasons.
While consumers are purchasing a greater number of homes these days they are not necessarily feeling as confident as they have in previous months. According to the March report from the Conference Board their consumer index dropped to a reading of 59.7 from the February reading of 68.