Consumer Confidence: The Heart of the Housing Market Recovery?
Consumer confidence in the economy can indicate in a very big way the state of the housing market. House market predictions are very susceptible to what the people are willing to pay. In times of economic strife, people tend to cut back. The opposite occurs during economic prosperity.
As with most economic model, the housing market is defined by sales and prices. Sales are making a huge comeback but prices still need some work. As consumer confidence and sales increase, prices will soon follow with demand blindsiding supply. In a buyers’ market, it always takes a little time to come back after a slump but and the surplus of houses on the market needs to diminish but the housing market is looking at a stout recovery if things continue to go this way.
Many of the go-to people in the industry, like Mark Zandi of Moody’s Analytics, are saying that “the crash is over” and consumer confidence is on the rise. Now that rock bottom has been reached on the housing market front, things are picking up and house market predictions have only begun to prosper.
According to reputed sources, this is a good time to invest in the real estate market as house market predictions are still low compared to the profit that investors stand to make in the future. While some conservative estimates claim that full recovery may not occur until 2015 or after, things are definitely beginning to shape up for the better and even the stock market is reflecting this with increases in shares within the industry.
All signs are pointing to a bright future with house market predictions backed by sound consumer confidence (which is actually measured). It seems as though the people that look to invest now will be the same people who are looking at a substantial profit come the next housing boom. The housing market is currently a third of the way back to normal, according to one source and this will only improve as we near 2015.
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(confident consumer photo used under creative commons license)