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Consumer Confidence At All Time Low
Tuesday, January 27, 2009
The consumer confidence hit an all time low this month as almost all Americans worry about their job and retirement. On Monday it was reported that over 70,000 workers will loose their place of employment over the next two months. News like this across the nation is not helping consumer confidence.
Real estate is directly tied to consumer confidence. The more people have assurance that they will have a steady job with a study pay check the more willing they are to purchase a home. When people do not know how long their job will last they stop purchasing goods and stash money in savings for a rainy day.
Lets just hope that our new president with his great economic stimulus package will give consumers a little more confidence by providing real benefits to them. If the end consumer does not see a result from the stimulus package the recession will linger on for a few more years. It is not just the large corporations that make up the United States economy. The majority of people work for small based business.
There is no question that the economy will take a turn for the better at some point. The question is how bad will it get before we see that bend in the street. How many people will loose their jobs, 401k savings, and houses, before the economy stops seeing new lows.
One thing we can all look forward to, and especially home owners and real estate investors
is a recovery in real estate. When people are paying down their mortgage and seeing home prices increase in value around them they feel a sense of worth and value in their decision and life. Lets just see how this all plays out.