Gas and Home Prices May Be on the Rise: As gas prices continue to go up, the prices of homes, job outlook, and consumer confidence fall. However, most of those numbers are the results of polls taken of a number of individuals across the country. Combine those numbers with the numbers produced by polls asking whether people plan to buy a house, a car, or major appliances in the coming months, and there is a mixed bag. The numbers for consumers planning on buying a car, a home, or major appliances in the next six months all rose, which may be a good sign for consumer confidence and the economy overall.
“Consumer spending is the largest portion of the economy, and economists watch confidence readings to get a feel for the direction of spending.” Cutting through all the numbers to decipher what they all mean is tricky business, but if people are planning on making large purchases in the coming months, that may be a strong indicator of consumer confidence. Add the “early readings on the labor market” pointing to a “strong reading on job growth in March” and these numbers may start to add up.
For the time being, numbers from the Federal Housing Finance Agency show a trend of stabilization for the price of homes in Miami-Dade and Broward counties. The FHFA showed steady levels in both counties for the second half of 2011. In fact, the FHFA’s index showed gains in the last quarter overall for both counties. Hopefully this trend will spread north in Florida and maybe those consumers planning on purchasing a home over the next six months will look to reside in Florida.
Information for this article was obtained at http://www.marketwatch.com/story/consumer-confidence-dips-in-march-2012-03-27 and http://www.miamiherald.com/2012/02/27/2663868/latest-south-florida-housing-numbers.html