Stay Ahead of Consumer Confidence
Consumer confidence is one of the key indicators that investors always track. For the past two years, consumer confidence has risen to surprising highs and fallen to desperate lows. Every time there is a shift there is a reason why.
That’s the scary part. Consumers are human. They react to headlines, media and world events that really have very little affect on the overall marketplace. Savvy investors not only watch consumer confidence but they analyze it. In fact, the consumer confidence index published by the Department of Commerce affects every market from equities to currencies to commodities to real estate. If you fancy yourself a real estate investor stay on top of this important index. You will make many smart moves by staying on top of consumer confidence.
In July, the Certified Financial Planning Board of Standards released a survey through June 30th, 2010. The study revealed that consumers are worried about equity markets and currency markets. The survey, which included more than 1,000 residences from all areas of the country and from all economic levels, indicated that 83 percent of those polled believed their finances would improve over the next six months.
These consumers believe that many sectors of the economy, including residential and commercial real estate, will also improve in the next twelve months. Progress will be slow and delayed, but progress will be made.
Certain aspects of the June real estate market activity are surprising. In Southern California’s six biggest counties, real estate sales increased by 7.2 percent in June compared to May. In fact, activity in these counties was the highest since June 2006.
California trails Arizona and Florida in short sales and foreclosure activity. Facts are facts. More money was invested in Southern California last month than in the pat two years. Additionally, more mortgages were written than in the last two years.
While this is not a complete endorsement, it certainly marks a trend worth watching. Pick your investment area and follow the consumer confidence trail to short sale success.