While we are always trying to find ways to help homeowners update their existing homes, we are always interested in what is happening the in the new home sales market. Whether it is up or down also affects whether people will be spending money to remodel their own home or search for a new one.
The interesting fact about the recent numbers is sales increased at the fastest pace in 2.5 years but consumer confidence fell! The Commerce Department last week said new home sales climbed 4.4%. New home building is expected to add to economic growth this year for the first time since 2005.
But, in a separate report, consumer confidence to round out the year fell more than 8 points from 73.7 to 65.1. What does this mean? Well, if confidence is down among those with buying power, it would seem that buying a new home, a large investment, would follow.
It’s important to note all the talk about the fiscal cliff hasn’t helped. Now that it is over, will the numbers change? Large investments, such as buying a new home or remodeling your current home are not easy to make when you are unsure about your future buying power. Here’s to hoping 2013 looks a bit brighter for everyone!