More confidence in market

Consumers make buying decisions based upon how confident they feel about things. Do they feel confident that their job will continue? Do they feel that buying a home is a good investment? That home prices will continue to increase?
Last year at this time there was much discussion about the “real estate bubble” popping. It didn’t. No serious student of the housing market thought we were ever in a bubble but it made for good headlines. Many who could afford a home have held off making the investment waiting to see if home prices were going to retreat from last year. They didn’t.
Despite the gloomy spring weather, homebuyers are having more confidence in the real market and making buying decisions. This restoration of confidence follows a nations trend measured by the Conference Board. Their Consumer Confidence Index increased in March to 107.2 up from 102.7 in January.
The Consumer Confidence Index measures how buyers feel about jobs, the economy their financial stability etc. The overall assessment of current conditions remains favorable while those claiming conditions were good rose and those claiming conditions are bad decreased.
As more realize that the sky didn’t fall on the housing market and confidence in the economy continues, sales of existing and new homes will increase to a historically normal level. We will not experience a 20 percent increase in property values this year but neither will we see a significant drop in values from last year.
This spring and early summer may be the best time for buyers to negotiate a sale of a home. Before sellers learn that confidence in the real estate market is returning.