It was just announced the Consumer Confidence Index dropped significantly from September to October. I am not an economist, but this can’t be surprising to most people. During October, the U. S. Congress allowed our government to close for 3 weeks in a dispute over the debt ceiling crisis and an attempt to de-fund the Affordable Care Act. I wonder what the “over/under” was on the index declining as a result of the shutdown.
So what is the significance of the index dropping? Economists use this as one of their tools for predicting consumer spending. Consumer spending is the primary engine that drives our economy.
How does this information relate to you and real estate? I maintain it is just a blip on the radar. Let me give you some additional facts to put this in perspective for you.
Existing Home Sales are at a 5.29 million annual rate, up 10.7% over a year ago. The median price is up 11.7% from a year ago, the tenth month in a row of double-digit year-over-year gains (thanks to Traci Petersen of Guild Mortgage for this Information).
Interest rates for home loans have risen slightly but are still about a point above the 40 year low point. The effects of the recession are steadily dissipating. The real estate market is strengthening and the future is bright. This is a great time to be very active in the real estate market! The lack of inventory is a small problem for buyers. Some patience is required. There are great buys available.