Consumer Confidence Continues to Grow
When the real estate bubble burst, the housing market took a while to hit rock bottom. 2006 and 2007 was the pinnacle of pricing in the residential market, and even though the recession hit its low points in 2008-2009, the real estate market didn't hit its lows until 2012. By that time, home prices had fallen by over 50% in some markets. Consumers, told over and over that housing couldn’t implode throughout the early to mid 2000’s were reluctant to get back into the game.
But as investors have jumped back into the real estate market, and the economy has shown strong signs of stabilizing and even growing; strong job numbers, low inflation, etc., consumers are starting to come back to the real estate market. Low interest rates have also helped prompt would be buyers to make a move in the housing market, and new construction has begun in many areas of the country; 3-5 years ago, it would have been rare to see new homes under construction.
The latest Consumer Confidence Survey puts consumer confidence at 94.5 up from 89 in September, and a huge increase from where it stood a few years ago. Below is a chart showing the steady growth in consumer confidence in 2014 ending in September.