Friday, March 28, 2014

Housing Market Bolstered by Steady U.S. Consumer Optimism

Slow and Steady Price Rise Boosts Housing Market Outlook 

The details seem stubbornly worrisome. Mortgage requirements have grown stricter. The Federal Reserve may or may not turn off the cheap money spigot—and if anything causes the stock market to sputter, it’s uncertainty. Occasional bits of good news in the labor picture can’t overcome the fact that unemployment remains stuck on high in many states.
All of this should be bad news for the housing market in Metairie, except for one overriding factor: apparently, American consumers aren’t buying it.
Despite uncertain economic news, consumers’ overall expectations for the housing market remained steady. The Federal Reserve Bank of New York’s monthly Survey of Consumer Expectations, issued last week, found that most expect home values to continue to climb through 2014. The uncertainty factor remains largely stuck in neutral, pretty much as it has for most of 2013.
The survey found more nuggets of good news likely to affect the Metairie housing market. There was no reported change from February’s report that close to 20% of respondents say they are likely to change residences in the coming year…similarly, the previous month’s finding that 44% predict their personal wealth will increase remained steady. Taken together, the two factors could likely indicate that a healthy number of home buyers will be looking for housing of greater value than that at their current address.
Fannie Mae’s most recent monthly National Housing Survey echoed the positive findings among consumers: “Notably, respondents’ home price expectations climbed significantly in February—with 50% saying home prices will go up in the next year…” Their finding of more volatile consumer attitudes was mainly attributed to momentarily high energy expenses caused by unexpectedly frigid winter weather.
Whether or not the national statistics accurately reflect local consumer dispositions, they provide a backdrop that bodes well for the impending spring selling season. Soon we’ll be entering the time of year which traditionally results in a considerable uptick in Metairie housing market activity – which may be prime time for determining whether this is the moment to make a change in your own residential outlook. For more pinpointed, up-to-the-moment details about your own neighborhood’s housing market profile, give me a call!  



Terez Harris NOLA Real Estate Group
(504)297-2619
Harris.Terez@gmail.com









Keller Williams Realty New Orleans 8601 Leake Ave. New Orleans, LA 70118 504-862-0100
Each office independently owned and operated. All brokers licensed in the state of Louisiana.




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