According to recent reports, there are signs that consumer confidence is on the rise and that many Americans are expecting that the economy is nearing the bottom.
While prices of single-family homes in 20 U.S. cities were down 18.6% in February compared to a year earlier, the fact that the rate of decline slowed signaled some hope for the housing market, according to USA Today. Additionally, the fact that the numbers did not set records for the first time in 16 months is also another source of optimism.
According to the National Association of Realtors, we can expect that home prices will continue to decline in areas with many foreclosures but strengthen in areas with few foreclosures.
To help struggling homeowners, the Obama administration announced its plans to increase aid by reducing payments for up to 1.5 million at-risk Americans.
Given the fact that consumer confidence accounts for more than two-thirds of U.S. economic activity, glimmers of hope and optimism are crucial in helping revive the down economy. That said, reports that showcase potential stabilization of the housing market will hopefully fuel confidence and lead to consumers feeling more comfortable spending again.
