Home sales low, but consumer spending up – What to make of this?
BTW, I haven’t told anyone this yet and not even my parents but here is what I may ask them…. Read this article from the Joint Center for Housing Studies of Harvard University. You’ll know!
But the headlines from today’s Washington Post are confusing!
- Consumers boosted their spending in October at the fastest pace in seven months
- US pending home sales fell 2.6 percent in October
Then the Fed Chairman said two words – “Just below” — Fed’s benchmark interest rate was “just below” the neutral level.
I asked a few experts and they said:
- If home sales are slow, homeowners may be investing in their existing homes with new home improvement projects
- Since consumer spending is high, incomes are increasing, they can afford to spend on new renovation projects
- If the interest rates stop increasing or even come down again, 2019 looks promising
In any case, 2019 should be the year of connecting with your customers online everywhere. We can help.
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