Last week, The Conference Board said its index of U.S. consumer confidence climbed to 133.4 in August, up from 127.9 in July. The reading well exceeded expectations, and it’s the highest level since October of 2000.
Factors of a buoyant job market and rising incomes are helping people feel better about the economy. All signs are go for continued increases. Great news for the housing market!
The national index showed signs of the market beginning to falter over the past 3 months starting in May of this year. Rising home prices coupled with higher mortgage rates, sapped some buying power from consumers. Since then, mortgage rates have softened to 4.5% for a 30 year loan. Prices have slowed, and even retreated slightly in the lower brackets. Although, Luxury properties are doing quite well in this environment.
Household incomes on the average are up year over year between 3% and 4% depending on the bracket, and inflation is marching at a 2% rate. Couple the extra money from wages with lower tax rates and we have a strong buying economy that could last for a good while.
Of course, the Sioux Empire economy has been strong for some time, and by adding a strong national economy on top of it will most certainly drive average household income even higher. Some of this counts for the 4% increase in closed sales this year in the Sioux Empire, and an average sale increase of 4.9% year over year according to the latest RASE report.
The near-future outcome in the Sioux Empire will likely be exceptional in comparison to the previous decade. Some predictions of 5+% average appreciation is projected, and household income may see as much; with lower income brackets doing as well as the higher brackets. A GDP at 4.2% in second quarter indicates a strong economy is at hand, and it appears to be on fire. Expect to see even more strength going forward with increased sales and prices over the next year.
Even with all the good news, making a move can be scary and confusing. The Tony Ratchford Group has a proven process that will help you discover more clarity about how to maximize your dollars, save you time, and give you peace of mind knowing you are doing the right thing, at the right time.
We invite you to call or text. 605.359.4100
Tony Ratchford, Real Estate Broker, Co-Owner of Keller Williams Realty Sioux Falls