Housing concerns
by September 14, 2010 8:06 am 58 views
According to a recent RBC Consumer Outlook Index, 40% of respondents surveyed say they expect the sale prices of homes in their neighborhood to decrease over the next year, compared to 31% who said this in August.
Only one-quarter of Americans expect the sale prices of houses in their neighborhood to increase in the next 12 months.
"As long as Americans are worried about their jobs, consumers’ outlooks will remain volatile," Marc Harris, co-head of Global Research at RBC Capital Markets, said in a statement. "Despite assurances that the Federal Reserve will intervene if necessary to support the economy, consumers continue to be wary about the direction of the economy and the country more generally. Until they see concrete evidence of a solid, long-term rebound, consumers will likely remain jittery."
INDEX FINDINGS
• 59% think the housing sector is financially weaker than it was a year ago and only 14% saying it is stronger.
• A plurality of Americans think businesses have gotten weaker across the board, believing that retail stores (47% saying they are weaker); Wall Street banks (44%); restaurants (43%); auto manufacturers (41%); and community banks (38%) all are financially less stable than they were a year ago
• Consumer confidence as measured by the RBC Consumer Outlook Index sank to its lowest level in six months, dropping to 45.9, compared to 63.9 in August.
• The plunge in confidence is being driven by falling expectations for the economy and fears about job security. Nearly one-third of Americans (32%) are worried about losing their job and nearly half (47%) know someone who has lost a job due to economic conditions.
• On a positive note, Americans are somewhat more optimistic about their own financial outlook. More than a quarter of Americans (27%) feel that their personal financial situation will be stronger in six months than it is currently, compared to 21% who feel they will be worse off six months from now.
• Nearly a quarter of consumers (24%) said they expect their debt levels to improve in the next three months, compared to only 21% who said this in August.
• Overall, two-thirds of Americans (67%) feel that the country is on the wrong track, the highest level this year and up from last month when only 63% felt that way.