Should you listen to the Feds or the latest pending home sales numbers?
Feds recently found positive signs in consumer spending and manufacturing output increasing despite snow storms and all around bad weather for most of 2010. Both are key indicators of improving economic conditions. Consumer spending accounts for approximately 70% of US economic activity and directly effects employment growth. Consumer spending also increased one half of 1% in January outpacing income growth for the fourth straight month! What does this mean you ask?? Basically it means consumers are slowly regaining confidence and beginning to feel good again about buying more goods and services.
NAR states pending home sales/signed contracts came in 12% higher in January 2010 than last January. These numbers should hit significant highs as a large percentage of the existing buyer pool rush to secure home contracts before the home buyer tax credits expire.
Overall it seems we are taking economic steps forward and there is a positive outlook in the market!
For more information about home buyer tax credit, please go to: http://www.irs.gov/newsroom/article/0,,id=215827,00.html
Happy House Hunting!
