It is apparent that the American public is feeling much better about the state of the economy. The recent Survey of Consumers done by the University of Michigan shows consumer optimism is at its highest since January 2004!
“Consumer optimism reached the highest level in the past decade in the January 2015 survey–since 103.8 was recorded in January 2004…Consumers judged prospects for the national economy as the best in a decade, with half of all consumers expecting the economic expansion will continue for another five years. The anticipated strength in the overall economy has been accompanied by more favorable income and employment expectations.”
Final Results for January 2015
|Index of Consumer Sentiment||98.1||93.6||81.2||+4.8%||+20.8%|
|Current Economic Conditions||109.3||104.8||96.8||+4.3%||+12.9%|
|Index of Consumer Expectations||91.0||86.4||71.2||+5.3%||+27.8%|
As expected, this has translated to consumers feeling more confident about real estate as well. Foot Traffic – the number of properties shown by Realtors during a month – swelled in December and January to the highest levels in a year. This is generally a good indicator of future home sales. After all, the more people looking at homes, the more homes will sell. We’re just waiting for inventory to catch up! We’re still seeing multiple offers and first week sales on some properties.
With the economy definitely improving and the consumer definitely more confident, we should see a very robust real estate market in 2015. It may make sense for you to take advantage of this market before the inventory catches up.