Remember Me
forgot your password?

Dwindling Consumer Confidence Is Not Helping the Housing Market

Despite aggressive interest rate cuts by the Federal Government to maintain jobs and even a stimulus package sent out to assist with finances, consumer confidence is still lingering around its lowest level in close to two decades. With everything much more expensive now and the dollar still staggering to keep up against to the Euro, consumers are more likely to remain pessimistic about the economy and market landscape until at least sometime next year, and this fact is something that hurts the housing market the most more than anything else.

Indeed, a combination of the mortgage crisis and weak consumer confidence will cause the real estate market to suffer extensively throughout the year, hitting the industry with a double blow that squeezes it from both ends. The mortgage mess has led to an enormous number of foreclosures that have brought thousands of homes to the market, while a weak response from consumers means that these homes won't be sold anytime soon.

Lynn Franco, leading director of the Consumer Research Center of TCB, or The Conference Board, has commented on the issue and said that consumer confidence is at the weakest it has been in 17 years. The Conference Board is recognized as producing the Consumer Confidence Index, a representation of the optimism consumers feel towards the economy which is measured by their activities of spending and saving.

In regards to the latest CCI evaluations, Franco believes that the current values look troubling in terms of where the economy is heading overall, and especially in regards to the housing market. She says that what with the way consumers are feeling apprehensive towards the market, not only concerning current circumstances but also future possibilities, they will most likely put off such an enormous purchase until they start to believe that things are at least a little more stable in the economy.

There was a report by the CCI in early 2007 that recognized a swelling of consumer confidence at the time, something that influenced economists to predict that the rest of the year would witness a turnaround for the real estate industry. However, this never happened, and in fact, consumer confidence went down considerably for the remainder of the year.

Inflation has had a considerable impact on consumer spending too, and especially in regards to real estate. With the cost of fuel prices and food at the level they are currently, very few people are willing to commit to the opportunity of buying a home, seeing it as a risky maneuver that can significantly burden them financially. Furthermore, employment is seen as something that is at risk for people across the nation, with job layoffs a very real threat currently for hundreds of individuals. When taking these aspects and seeing the big picture, it comes as no surprise that the housing market is suffering through one of the toughest times in decades.

Even though homes may been cheaper now than they have been in years, buyers are sitting on the sidelines still because they fear that their credit scores aren't good enough to warrant finding a loan that can purchase them a home. Others are simply waiting it out and wanting to see how low prices are going to drop until they feel there's a good enough opportunity to take the plunge into purchasing a new home.

Joseph Kenny

Joe Kenny writes for Rebuild.org, offering home equity loans, they also have some great offers on home refinance for any homeowners looking to release equity.

Rate this Article: 0 / 5 stars - 0 vote(s)
Print Email Re-Publish

Add new Comment



Captcha

  • Latest Finance Articles
  • More from Joseph Kenny

A Helpful Guide Into Understanding Unsecured Debt Consolidation Loans

By: Steve Smith | 09/11/2009
An unsecured debt consolidation loan is when individuals consolidate their debts into one monthly payment without collateral being required i.e. one's home. This means that even if one fails to make the repayments then the individual would not lose their property or valuables. Getting an unsecured debt consolidation loan would be purely based on one's job status and earnings.

Eliminate Your Credit Card Debt - How Obama Makes it Easier to Eliminate Credit Card Debt

By: Matt Couch | 09/11/2009
Due to recent recession, the plight of people who are knee deep in debt has increased.

Credit Card Debt Settlements - How to Find Credit Card Debt Settlements Online

By: Matt Couch | 09/11/2009
Now day's consumers have many options of companies to select for their debt settlement.

Debt Free America - How Stimulus is Helping Debt Relief Become Available to Consumers

By: Matt Couch | 09/11/2009
Debt relief has never been so easily available or popular as it is in the time of the current recession.

Eliminate Credit Card Debt - How to Legitimately Eliminate Credit Cards With Stimulus Money

By: Matt Couch | 09/11/2009
American economy has been flooded by Stimulus Money.

Free Debt Relief Counseling - How to Find the Best Rated Debt Settlement Companies

By: Matt Couch | 09/11/2009
There are several companies in the market claiming to settle your debts and save up to 50% - 60%.

Consumer Debt Relief Advice - How to Legitimately Eliminate 50% of Your Credit Card Debt

By: Matt Couch | 09/11/2009
Once when your account gets turned over to the debt collectors your phone keeps ringing at all times of the day. You are scared to go bankrupt or of a lawyer coming and taking over your home and your car

Eliminate Credit Card Debts - Legally Never Pay Back Your Credit Card Debts

By: Matt Couch | 09/11/2009
Before a loan is disbursed to a customer a detailed documentation is done by the credit giving companies ensure that all the legalities are in place and the borrower is aware of the terms and conditions of taking the loan.

What Type of Loan Do You Need?

By: Joseph Kenny | 19/06/2008 | Loans
If you have ever applied for a loan, then you probably are aware that there are different kinds of loans which are available at banks, credit unions, other financial institutions, or with private lenders.

Choosing The Right Life Insurance For You

By: Joseph Kenny | 17/06/2008 | Insurance
Here is an important question for you. Have you considered the type of life insurance policy you need? For many people throughout the country, the question of life insurance is one they have no answer. They haven't even considered it. It is not always about not having the money to purchase a policy.

Be Prepared When Applying For A Mortgage

By: Joseph Kenny | 16/06/2008 | Mortgage
It is true that most of the people in America do not have the finances to purchase a home and pay cash or the equivalent for it. The American dream is to own a home and the main objective is to obtain a mortgage for it. This is what the mortgage lenders know and most of them are willing to be of help in this endeavor.

Choosing The Right Credit Card Deal

By: Joseph Kenny | 16/06/2008 | Credit
When you are considering applying for a credit card you probably will have several offers available. The credit card companies will spend about a million dollars a year to send us their particular offers for credit. Trying to choose which one among them that is best for you can be a hard decision to make. Should you choose the first pre-approved offer and send in the application?

Dwindling Consumer Confidence Is Not Helping the Housing Market

By: Joseph Kenny | 16/06/2008 | Finance
e aggressive interest rate cuts by the Federal Government to maintain jobs and even a stimulus package sent out to assist with finances, consumer confidence is still lingering around its lowest level in close to two decades.

Choosing Between A Second Mortgage And A Home Equity Loan

By: Joseph Kenny | 16/06/2008 | Mortgage
There are some alternatives available to the homeowner who needs financial help but does not want to refinance their present mortgage. There are however, at least two main options if some sort of equity loan is desired. You can obtain an equity credit line or a second mortgage loan and there are specific advantages and disadvantages with each one.

Defining Credit Card Finance Charges

By: Joseph Kenny | 13/06/2008 | Credit
There are other fees associated with the use of a credit card besides the actual charge from each purchase. These other costs can add to the total balance on your account that you have to pay.

Eliminate Debts For A Better Personal Life

By: Joseph Kenny | 13/06/2008 | Finance
The elimination of personal debt is always a good idea; removing debt is always advantageous in many ways. It doesn't matter who you are wealthy and have huge debts, or who are regular person with a small amount of debt.

Submit Your Articles Free: Signup
Article Categories




Use of this web site constitutes acceptance of the Terms Of Use and Privacy Policy | User published content is licensed under a Creative Commons License.
Copyright © 2005-2008 Free Articles by ArticlesBase.com, All rights reserved. (0.06, 1, w1)