Consumers are thinking of getting back to the home market but remain cautious. According to a monthly release by the Conference Board, 4.9% of consumers surveyed have plans to buy a home within the next six months, a moderate rise from the 10-month-low of 4.8% in June but still one percentage point lower than the 5.9% in July 2015. This month's result came at a time when U.S. home prices was reported to continue rising quickly in May.
Two of three components of potential home buyer confidence moved a notch up in June. Potential buyers for new homes and existing homes both increased 0.2 percentage point from 1.1% and 2.6%, to 1.3% and 2.8%, respectively. Undecided consumers—those who intend to buy a home in the future but are not sure whether new or existing— dipped 0.3 percentage points to 0.8%, meaning more people have made up their mind on home types, which could be sign of rising sales in the future.
This month's consumer confidence index, a general gauge of consumers' economic outlook, dipped slightly to a score of 97.3 from June's downwardly revised 97.4, but is still 6.3 percentage points higher than July 2015. The improvement in consumer confidence echoes several positive metrics--including rising new home sales--previously reported by BUILDER, but consumers are still wary of the market due to the uncertainty of the global market.
“Consumers were slightly more positive about current business and labor market conditions, suggesting the economy will continue to expand at a moderate pace,” said Lynn Franco, Director of Economic Indicators at The Conference Board, in a statement. "Expectations regarding business and labor market conditions, as well as personal income prospects, declined slightly as consumers remain cautiously optimistic about growth in the near-term."
The monthly survey, based on a probability-design random sample, is conducted by Nielsen for the Conference Board.
Read the full release on Conference Board here >>
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