Consumer Confidence Drops to Lowest Level in Nearly a Decade
With many Americans facing uncertainty in their employment, health, and everyday lives, it makes sense that they lack confidence in the housing market as well. In April, consumer confidence hit the lowest level since 2011, a time when foreclosures and economic instability from the housing market crash were still unfolding, according to the Fannie Mae Home Purchase Sentiment Index. Those surveyed predicted housing prices would rise only 2 percent, which is the lowest in the index’s history. The market may be showing signs of rebounding, but potential buyers are still trying to navigate the economic toll of the pandemic.
The economic free fall from Covid-19 is taking its toll on what had been very strong housing demand and sentiment just a few months ago.
After falling sharply in March, housing confidence among consumers took an even deeper dive in April, according to the Fannie Mae Home Purchase Sentiment Index. It was the lowest level since November 2011. Back then, the market was reeling from the subprime mortgage crisis, with home prices cratering and foreclosures rampant.
Consumers suddenly have a much more pessimistic view of buying and selling conditions. In addition, more consumers said their household income is now significantly lower than it was a year ago.