Property Sales Affected by Florida Consumer Confidence

By January 31, 2013Traditions Property Blog

The Florida consumer confidence index is a monthly survey report that gages the attitude of Florida residents on certain economic factors. Questions like “are you better off financially than you were a year ago,” and inquiries into the expectations one holds concerning financial gains within the next year are asked, and scores are given for each answer.

While the consumer confidence index is not directly related to property sales in Jacksonville or Florida foreclosures, they do impact one another. High consumer confidence spills over into the housing market. When Floridians feel more comfortable with their economic health, they are more likely to feel comfortable looking for property sales or putting their own home on the market. High consumer confidence is even known to impact the overall attitude of rental property management, giving those who own rental properties a greater opinion of the worth of their income property.

Interpreting the Consumer Confidence Score

The higher the consumer confidence score the greater the strength of Florida’s economy is perceived. At the end of 2012 the consumer confidence index was at 76, but in January those results dropped one overall point to 75 with minor aspects of the report revealing greater shifts in regards to specific questions.

For example, confidence in how Florida residents feel they are doing financially now, in comparison to a year before, dropped three points this month; but there are several potential reasons for this shift. Many people feel that they are doing better financially at the end of the year, prior to the December holidays, than they do in the beginning of the year while they are still attempting to recoup the funds spent in December. National attitudes towards the recent increase in taxes could also be causing a slight change in consumer confidence, leading people to be more hesitant in their survey responses.

Experts expect that this slight dip in consumer confidence will improve over the course of the year. One positive aspect of even this most recent report was the general consumer opinion towards the purchasing of expensive retail goods like televisions. This aspect of consumer confidence actually rose one point to 87, and this could even further relate to the attitude towards buying homes in Jacksonville.