The Conference Board released their report on Consumer Confidence Tuesday. In researching the long term confidence data, I noted that only once since 1970 has consumer confidence gotten this low without the US going into a full-blown recession. Hopefully, we’ll avoid it this time, too. The Federal Reserve is doing what they can. Congress is trying to come up with a stimulus package. However, there’s only so much they can do at this point without creating other economic problems (inflation primarliy).
What has this caused in the local real estate market? So far, prices have not weakened (in fact they’ve continued to rise) due to the fact that more sellers are staying out of the market. Inventory of homes for sale is very low. Demand is still greater than supply.
We’re starting to see weakness, though. Homes that have negative “issues” or those that are slightly overpriced are taking longer to sell than they were a month ago. Super Bowl weekend is typically slow (this week there are very few new listings coming to market). The next two weeks should be very telling in terms of supply and demand.