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| Poor Housing Data Continues |
There has been little news to cheer about in the housing sector of late, including the most recent data.
Housing demand is weak, with new-home sales reaching a record low and existing home sales falling 10% in February. A steady increase in distressed home sales is putting downward pressure on prices, with both the Case-Shiller composite indexes and the Federal Housing Finance Agency index down again in January. Following the rise and fall associated with the home buyer tax credits, the trend in house prices has been relatively flat since the trough in early 2009.
Consumer confidence was down in March, with surveys from both the University of Michigan and the Conference Board finding increasing pessimism about the future amidst concerns over rising inflation and the sustainability of recent economic and employment growth. Economic growth accelerated in the fourth quarter of 2010, but the potential for setbacks is large, raising the possibility of slower near term growth.
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The Conference Board’s Consumer Confidence Index turned down in March, with consumers becoming increasingly pessimistic in their expectations for the economy and jobs growth. Posted: March 29
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The Standard & Poor’s Case-Shiller house price index continued its steady decline of recent months, reflecting the trend in other key housing market indicators. Posted: March 29
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Consumers’ confidence in the economy may be flagging, but their buying attitudes indicate that they intend to keep spending, with a rising share perceiving home buying conditions as good. Posted: March 25
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The Federal Housing Finance Agency’s monthly purchase-only house price index fell further in January. The decline reflects the recent increase in sales of distressed homes sold at a discount. Posted: March 22
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