Consumer Confidence was down 13.4% from 6 months ago. This is the biggest drop in a 6 month period since 1978. BUT it’s up 3 percentage points from November. Obviously, there are two main factors that are causing the overall drop: escalating inflation and Covid-19 (increase in cases/hospitalizations and the Omicron variant, thankfully more mild than the Delta so far?). I believe the 3 point increase this month can be attributed to lower income workers experiencing more job opportunities and higher wages. The upper third of income earners is likely the most fearful group, but there is no stopping their consumerism. As a result, I expect interest rates to rise as early as Spring. Though sooner than expected, this rate increase doesn’t drive our market. However, it does directly affect the actions of homebuyers. It’s not IF consumer confidence will rise, it’s WHEN consumer confidence will rise, and this will fuel a boost in the Real Estate market. Team Fallico is expecting it early 2022, and we’re PREPARED for a charged Spring Market. Demand is still here. Supply is on the way.
