Each day the Research staff takes a look at recently released economic indicators, addressing what these indicators mean for REALTORS® and their clients. Today’s update discusses consumer confidence and Case-Shiller home price data.
Each day the Research staff takes a look at recently released economic indicators, addressing what these indicators mean for REALTORS® and their clients. Today’s update highlights the Case-Shiller index and consumer confidence.
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Each day the Research staff takes a look at recently released economic indicators, addressing what these indicators mean for REALTORS® and their clients. Today’s update highlights the Case-Shiller price index and consumer confidence.
- The October 2011 Case-Shiller 20-city home price index fell by 1.2 percent from the previous month and was down 3.4 percent from one year earlier.
- The month-to-month change in home prices ranged from 0.3 percent in Phoenix to -5.0 percent in Atlanta. On a year-to-year basis, the Washington and Detroit metro areas showed gains of 1.3 percent and 2.5 percent, respectively.
- Overall the index for October suggests that home prices remain under pressure. Other statistics tracking the housing market show more consistent signs of stability or improvement, however. New home sales are off their recent lows, rising for the past three months and single family housing starts, although low, were up slightly during the past two months. Existing home sales rose 4 percent in November.
- Also, the Conference Board’s consumer confidence index rose for the second consecutive month, beating the consensus forecast. The index, at 64.5 in December, was up from a recent low of just 40.9 in October. Consumers were also more confident about the future. The index tracking consumer expectations shot up to 76.4 compared to a recent low of 50 in October. Overall, it appears that consumer confidence is rebounding, yet another positive sign for the economy and the housing market as we enter 2012.
Each day the Research staff takes a look at recently released economic indicators, addressing what these indicators mean for REALTORS® and their clients. Today’s update discusses the Case-Shiller index, the FHFA Home Price index and consumer confidence.
Each day the Research staff takes a look at recently released economic indicators, addressing what these indicators mean for REALTORS® and their clients. Today’s update highlights the Case-Shiller price index and consumer confidence.
Each day the Research staff takes a look at recently released economic indicators, addressing what these indicators mean for REALTORS® and their clients. Today’s update highlights the Case-Shiller Home Price Index.
Each day the Research staff takes a look at recently released economic indicators, addressing what these indicators mean for REALTORS® and their clients. Today’s update highlights import and export prices, and inflation.
Each day the Research staff takes a look at recently released economic indicators, addressing what these indicators mean for REALTORS® and their clients. Today’s update highlights the Case-Shiller price index and consumer confidence.
The tough economy and the high unemployment rate have provided little opportunity for wage increases in the past two years. The hourly earnings of those workers in non-supervisory positions have risen by 2.3 percent from one year ago to July. That is a full percentage point below the 20-year average in annual wage increases of 3.3 percent.
At the same time, the costs of purchasing day to day items have been rising recently, despite the economic weakness, due to plenty of printed money. The most recent consumer price index rose by 3.6 percent from one year ago to July. In short, Americans are falling behind in their standard of living. For the next two years at least, it is unlikely that wage growth will increase in any measurable way. Consumer prices, however, can quickly change along with swinging oil prices. If oil prices were to fall by another 10 to 20 percent to about $70 per barrel, then it is possible for consumer price inflation to retreat below wage growth.
Unemployment, as terrible as it is, impacts about 10 percent of the workforce. Wages and inflation, however, impact 90 percent of the workforce. That is one key reason why consumer confidence is struggling to recover.
Home Sales and Confidence
Naturally, more jobs should mean more home sales. However, that relationship does not always hold up if mortgage availability or consumer confidence move in a less favorable direction. In the past few years, jobs have been added and rates have been falling, but home sales have barely moved up. Consider that from the cyclical low point for jobs in America in early 2009 (3 years ago), the total net payroll job additions have been 2.7 million. But home sales in 2011 came in at 4.26 million — not that much different from the 4.34 million existing home sales figure in 2009 and the 4.19 million tally in 2010.
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