Consumer confidence picks up, but home prices flatten out

[TomCADem]

Source: Washington Post

Consumers are feeling a little better about the economy but home prices are flattening out after an unexpected rebound in the spring and summer, according to two closely watched reports released on Tuesday.

A monthly survey by the Conference Board, a private research group, found that consumer confidence picked up slightly in December after rising in November, but still remains at a weak level. The results largely capture consumer attitudes about the labor market.

Meanwhile, the Standard & Poor's/Case-Shiller home-price index, which tracks sales in 20 major metropolitan areas, showed that prices of single-family homes were largely flat in October compared with September.

The housing market's decline in recent years has helped undermine consumer confidence and cripple the economy. Reinvigorating the housing sector and boosting confidence are considered key components to revitalizing the economy, economists say. As people feel more secure about jobs, they are likely to spend more money on goods and services, including big-ticket items such as homes.


Read more: http://www.washingtonpost.com/wp-dyn/content/article/2009/12/29/AR2009122901424.html?hpid=topnews

[noamnety]

1. Glad to see that.

I thought I read earlier this week that housing prices were going up - I like this news better. Housing's a necessity, it shouldn't be unaffordable.

[TomCADem]

2. Somewhat surprised someone would un-rec basic economic data, but...

I agree that it is not necessarily a good thing for home prices to reach the dizzing levels they did up through 2007. That would just be another recipe for disaster.