Confidence In The Economy For 2017 Should Impact The Real Estate Market Positively
2017 is upon us, so, what can we expect for the Charleston SC real estate market? Over the next few posts I am going to share news and recent reports that provide some insight as to what we can expect.
By no means do I have a crystal ball, but when you look at recent history coupled with current market conditions as well as projections, we can get a good idea of where we are and where we might be heading.
As i have said before, it is important to keep up with the market for both buyers and sellers so they can make educated decisions going forward. The mainstream media doesn’t always present the facts without skewing them for the purpose of attention grabbing headlines or clickbait.
The economy always plays an important role in the real estate market. In upcoming posts I will dive deeper into interest rates as well as the latest housing reports.
Today, I am looking at another important factor: Consumer Confidence.
Consumer confidence plays an important role simply because often, perception is reality, whether or not that perception is based on reality.
Consumer Confidence At Highest Levels In Years (Multiple Sources)
The good news is, according to multiple sources, consumer confidence is at its highest level in over 10 years. Right now, people are feeling good about the economy
Everyone has concerns about the economy during an election year–what impact will the election results have?
According to the University of Michigan, Consumer Confidence is at it’s highest level since 2004 immediately following the November results:
The National Federation of Independent Businesses’ Small Business Optimism Index also increased to it’s highest level since 2009:
According to CNBC, confidence increased by 17 points.
Consumer Confidence hit the highest level in December since 2001, according to the New York Conference Board.
One important thing to note–I am merely reporting the news and am in no way trying to make this a political discussion. After all, this is a real estate blog.
But many will say that an uptick in Consumer Confidence is common immediately following a Presidential Election–regardless of which party takes office.
And that is true. In fact, this next graphic shows the Consumer Confidence levels since 2001, with the elections of Bush, Obama, and Trump. Each one shows an uptick, as well as a downward trend afterwards. We will have to see how this trends as we begin the Trump Administration.
How Does This Impact Charleston SC Real Estate?
This is certainly good news as it pertains to the outlook for the economy in 2017, and real estate especially. But there are other factors that will come into play.
One big factor affecting the real estate market that has been an ongoing issue is the lack of inventory. Buyer demand remains strong, but supply has not been keeping of with demand.
We have some good momentum in the real estate market that we’ve seen for a couple years now, and that continued throughout 2016. However, we need supply to catch up to maintain that momentum.
There are several factors at play for real estate, including buyer demand, inventory, interest rates and new home construction. These are all upcoming topics that I will explore more deeply, so stay tuned.
But as far as confidence, these reports are all good signs for the national market as well as the local Charleston SC real estate market. For would be buyers–both first time and move up–this confidence will propel them off the fence and into the market.
For sellers, it will get them into the market, which is exactly what this market really needs. If inventory levels can increase, 2017 can be a really great year for real estate.
Stay tuned for more news from the real estate market. If you are looking at buying or selling Charleston SC real estate, then be sure to visit my Pam Marshall Realtor website for more information.