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Consumer Confidence and Home Prices Are On the Rise

By
Mortgage and Lending with The Federal Savings Bank/Lending in 50 states NMLS # 109616

Consumer confidence continues to rebound across the nation as states reopen and begin the process of getting back to business. The Conference Board reports that its Consumer Confidence Index surged in June to 98.1 from 85.9 in May. In addition, the Present Situation Index – based on consumers’ assessment of current business and labor market conditions and the Expectations Index – based on consumers’ short-term outlook for income, business, and labor market conditions both had big increases. Lynn Franco from the Conference Board said, "It’s too soon to say that consumers have turned the corner and are ready to begin spending at pre-pandemic levels.”

House price gains were solid in April despite being in the midst of a pandemic induced shutdown. The S&P Case-Shiller 20-City Home Price Index rose 4% in April 2020 compared to April 2019, up 0.3% month-over-month from March to April. The National Index saw a 4.7% gain and rose 1.1% monthly. A spokesperson said the data continued to be remarkably stable. this number bodes well for the future as prices managed to increase during the darkest days of COVID.

 

Consumer confidence rebounds. Home prices gains solid. Home price gains could continue.

Gwen Banta
Sotheby's International Realty - Los Angeles, CA

Jeff, we are seeing multiple offers on almost every transaction here in Los Angeles. The activity has certainly boosted agent confidence as well as consumer confidence!

Jun 30, 2020 04:35 PM