Despite a robust holiday spending season from U.S. consumers, the December 2010 consumer confidence numbers are out and the numbers are down.
DOES THIS BOTHER US?
We’ll be honest, it does bother us. Here’s why:
Consumer confidence is powerful stuff and can be a self-fulfilling prophecy. If you think times are tough, then you will most likely pull back on your personal spending. If you pull back on your person spending, the economy slows. When the economy slows, it reinforces your original thoughts that times are tough.
A question we keep coming back to that we just can’t answer is, How many of those polled have stopped making their mortgage payments, and they know that sometime in the near future that a NOTICE OF DEFAULT will be delivered to their front door?”
We think many of those polled know more about their personal mortgage situation than anyone else. This could be a hint at what’s to come for Fresno short sale numbers in 2011.
If you knew that you hadn’t been making your mortgage payments for a few months, or that you were about to stop making your mortgage payment, you would tend to answer consumer confidence questions with a more negative outlook.
HOW ARE YOU FEELING?
How is your own personal consumer confidence levels right about now? Did you add to the debt side of your personal balance sheet with increased credit card spending this holiday season?
Is a lower consumer confidence number, to end 2010, a preview to the Fresno short sale numbers for 2011?
