No Really...how confident ARE you?
Posted May 28, 2008 3:23 p.m. EDT
So how are you feeling these days about your house and the economy? Confident? Not so much says the most recent Consumer Confidence Report released today... the biggest drop in sixteen years offers evidence that many consumers are feeling downright dismal about the current and future state of their economic well being.
So how does this translate to the housing market? In a direct and impactful way I’m afraid to say… consumers tend to align their feeling of wealth with the perceived value and equity in their homes. When home sales and values are declining on a national level (always remember we deal in the local approach with real estate)… those stories impact the psyche of the consumer across the land. If we’re not feeling as wealthy, then we tend not to spend money on perceived luxury items. That lack of spending creates a tremendous trickledown effect and begins to weigh on everything and everyone.
Gas prices are a big trigger right now with both a technical and perceived impact on the American consumer… and all of this then ties into the mentality of what helps to drive the housing train – Confidence!
So even though we are very fortunate to live where we live and be privy to our local real estate market – because of the transiency of our marketplace and the true domino effect of those looking to buy in our market from all over the US - the psychological and technical weighing of this economy may continue to linger for some time.
Jeremy M. Salemson
Corporate Investors Mortgage Group, Inc.