Boston Area Consumer Confidence in High Gear

Boston area consumer confidence, led by high hopes for the Boston area housing market, has recovered from its doubts in the wake of the government shutdown last fall and is starting the new year on a tear.

Boston area consumer confidence appears to be in high gear.Two weeks ago economists at The Conference Board forecasted that for the year as a whole growth will accelerate markedly to 2.9% in 2014 from the subdued 1.9% pace in 2013. The robust gains in household net worth, fueled by the 29% gain in equity prices and 16% rise in median home prices, boosted consumer spending to a robust 4% pace in Q4 2013. The Conference Board set a goal of 1.11 million housing starts this year, up from .92 million in 2013.

“Consumer confidence advanced in January for the second consecutive month,” according to Lynn Franco, Director of Economic Indicators at The Conference Board. “Consumers’ assessment of the present situation continues to improve, with both business conditions and the job market rated more favorably. Looking ahead six months, consumers expect the economy and their earnings to improve, but were somewhat mixed regarding the outlook for jobs. All in all, confidence appears to be back on track and rising expectations suggest the economy may pick up some momentum in the months ahead.”

Housing Professionals Watching Boston Area Consumer Confidence Closely

Boston area housing professionals are watching Boston area consumer confidence trends closely as they prepare for the coming spring market. With inventories still low and uncertain interest rates raising questions about buyer demand, decisions buyers and sellers are making now could shape sales and price trends for the coming season—and the whole year to come.

We’ll keep you up to date on Boston area consumer confidence and housing here at our website as the year progresses. Check out our other news articles and information at the Boston Real Estate News link to your right under Boston Real Estate Categories.

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