In a L.A. times article it was noted that Consumer Confidence dipped in the month of September
The article titled “Consumer Confidence Unexpectantly Falls in September” quoted a recent consumer confidence index which measured a drop from 54.5 in August to 53.1 in September. The drop is contrary to most economists predictions of a modest increase in confidence and an overall stabilzing of the economy. A primary reason for the decline is noted as being a lack of confidence in the job market. What we are seeing as Realtors to some extent supports the article but the interesting thing is that in spite of a concern over jobs we are seeing a robustness in homes sales and at the lower price points we are seeing multiple offers over asking price. In fact the same article quotes a recent “Case-Schiller Home price Index report” that shows prices on the rise over this year. The same report noted that prices are still 13% below July of last year but they seem to have stabilized.
Analysis
Based on what we are seeing in terms of homes sales in the Bay Area my thoughts are that there is pent up demand for homes especially at the lower price points, and unless we have a large inventory of homes suddenly become available, I feel that prices have stabilized and in fact are starting on their way up. In general the mid-priced homes are not selling as fast but in areas likeSan Ramon we are seeing homes priced up to $800,000 sell with multiple offers. So, my conclusion is that the age old definition of real estate “Location,Location,Location” still holds true and in desireable areas, in spite of a slight drop in consumer confidence, homes will continue to sell.
