Daily Real Estate News | March 26, 2008More Consumers Ponder Home Purchase
The number of consumers who say they plan to buy a home in the next six months rose slightly this month to 3.3 percent from 2.9 percent, despite an overall drop in consumer confidence.
According to a survey by the Conference Board, a private research group, consumer confidence fell 11.9 points to 64.5, marking a downturn in sentiment to levels usually seen only during recessions.
Consumer expectations about the future plunged to their lowest point since 1973, when a recession was followed by painful inflation.
Consumers expect inflation to reach 6.1 percent in the next year, the highest rate since the aftermath of Hurricane Katrina in 2005, when gasoline prices surged.
"We've been seeing a gradual trend upward since the end of last year, and it's following in line with oil, gas and food prices," said Lynn Franco, who oversees the Conference Board survey.
Source: The Wall Street Journal, Sudeep Reddy (03/26/2008)