U.s. Consumers More Confident Of Home Prices

By Author: Bruce Wills
Total Articles: 52
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U.S. consumers more confident of home prices

According to a survey conducted by the Prudential Real Estate Outlook on 1000 Americans, in the age group of 25 - 64 years having a household income of minimum $35,000, it was found that expiry of tax credit has negligible effect on home purchasing. The online survey was conducted from April 15 to April 20. The main concerns of homebuyers were jobs and mortgage rates, and the least concern was the expiration of tax credit policy. The Prudential Real Estate Outlook informed the survey has a margin error of + or - 3 %.

The survey found that the Federal home-buyer tax credit policy helped in stimulating the sales of residential properties and the consumers are now aware of the fact that the price of the properties are lowest and therefore, the market will improve in future.

Some of the main points of the survey were:

61% of the home buyers cited low mortgage rate as main cause for home purchasing.

65% of the respondents said the end of tax credit policy has little or no effect on their interest for home purchasing.

90% of the surveyed ...
... believed the tax credit policy has helped first time home buyers.

46% believed the prices will increase in a year.

79% of the respondents said over a period of five years, the prices will increase.

U.S. April month's retail sales will be up 1.7%

Retailers found an increase in sales in the month of April as the consumers were willing to spend more. Retail Chains of Abercrombie & Fitch, Target Corp, J.C. Penney Co and many other will report the same-store sales of the year on Wednesday and Thursday, and according to the Thomson Reuters data the same store sales will be 1.7% more in the month of April as compared to 2.7% of drop in the last year.

A record 9.1% increase in sales was reported in March during the Easter holidays and market analysts are waiting to see the two months combined report. This will be eighth consecutive month growth as the consumer spending on non-essential items has risen.

Buyers who postponed purchases in 2009 have come out and they are spending to buy new clothes and other household items. New fashion models has been introduced and analysts are expecting the March to April sales to be at 5.4%, which is 4% more than the gains made in February month and 3.3 % more than January.

Market analysts believe consumer spending is contagious and once spending starts it would not stop immediately. It is believed that the new trend will not disappear in near future.

April 2010 was dry month as compared to April 2009 and the climate helped shoppers to reach markets. In the clothing section some retailer did exceptionally well and the change in climate helped the retailer of footwear to see an increase in sales.

The spending on house appliances has also increased. Many Americans made use of the tax credits and bought new homes. The sales of home furnishing items and household appliances rose.

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