There is actually a phrase, “Consumer Confidence,” which sometimes, defies all the statistics and reports by reputable experts, and sometimes uncannily matches them.
We have it on good authority that “Consumer confidence hit a seven-month high in August and new single-family home sales rebounded in July, suggesting underlying strength in the economy that could still allow the Federal Reserve to raise interest rates this year.”
A Key to Consumer Confidence: Unlocking the Housing Market
Around Central Florida, we are definitely seeing that the “housing market is boosting home-builders.” Moreover, many luxury home builders, like the Toll Brothers (TOL), the largest U.S. luxury home builder, said on Tuesday that orders had risen 16 percent so far in the quarter started in August, outpacing the 12 percent rise in the company’s third quarter.”
Such a building boom is part of the new energy we see in consumer confidence. It is difficult to put facts behind a feeling, but the bounce in the step of construction company owners speaks for itself!
The Toll Brothers added, “The construction business in America is booming. There is growth on all levels and this morning’s ADP private jobs numbers confirmed that once again. Once again, construction was an important part of the monthly job growth, with around 17,000 jobs added in the sector.”
One measure of Consumer Confidence can be seen in the Real Estate Listings. We can not help but notice that the inventory of new houses for sale is rising, month after month on a national level. “The Commerce Department said the stock of new houses for sale increased 1.9 percent to 218,000” as of June 2015, which was “the highest level since March 2010.”
So that we do not get carried away with too much rosy optimism, Palm State Mortgage Company still notes that “Supply remains less than half of what it was at the height of the housing boom.”
Consumer Confidence: Keeping Home Fires Burning–A New Meaning
We also can not help but notice that the current rise in consumer spending is helping our first time buyers find affordable home pricing.
Many experts cited the August 2015 labor statistics as mixed, but let us review a bit of the data:
1. Unemployment rate edged down to 5.1 percent and the number of
unemployed persons edged down to 8.0 million.
2. Over the year, the unemployment slid down by 1.0 percentage point. However, that means 1.5 million fewer people who are out of work, when you translate the numbers into human beings.
For the last couple of weeks the financial news has been focused on China and on market reports, but the above data is completely driven by American employment and the spirit of Consumer Confidence.
As we say farewell to summer with the Labor Day Holiday and travel into the oncoming Fall, economists are predicting that declines are likely to be modest. We are likely to be proceeding on an even keel. We are also likely to maintain “a strong labor market, lower gasoline prices and an improving housing market.” All of these factors fuel the fires of the American Dream of Home ownership.
At Palm State Mortgage Company, we can see a new, enthusiastic optimism in the shining eyes of new home buyers as they cross our threshold.
Millan Mulraine, deputy chief economist at TD Securities in New York, stated,” If this upbeat sentiment is sustained, then it could potentially provide a strong platform for a sustained upswing in consumer spending activity, which could provide a strong tailwind for the economic recovery going forward.”
Whether you are searching for a first time home, planning a re-financing of your current home or creating a vacation second home, Palm State Mortgage Company invites you to share a new consumer confidence, a the spirit of optimism. We delight in extending the positive vision of a hopeful future as we find your ideal home financing in the Autumn of 2015.
