Improving consumer confidence levels could drive housing purchases in Richmond
Consumers across the nation were facing hard times following the recession of the mid-2000s. Job opportunities were scarce and prices continued to rise for everyday items. Fast forward to 2012 and the economic outlook of the nation is improving. In metros across the country, job creation efforts are succeeding and new businesses are popping up.
Richmond, in particular, is starting to thrive in numerous ways. According to the United State Department of Labor, unemployment was down to 6.4 percent in August 2012 and the civilian labor force increased to 679,900. Workers looking to relocate to this metro for employment opportunities may want to consider purchasing one of the homes for sale in Richmond.
American's economy outlook reaches record high
According to Fannie Mae's September 2012 National Housing Survey, American's optimism about the recovery of the housing market is being bolstered. Factors such as home price declines, mortgage rate decreases and improved employment opportunities are boosting people's confidence. This improvement could result in more home purchases
"Consumers are showing increasing faith in the nascent housing recovery," said Doug Duncan, senior vice president and chief economist of Fannie Mae. "Home price change expectations have remained positive for 11 straight months, and the share expecting home price declines has stabilized at a survey low of only 11 percent. Furthermore, the Federal Reserve's latest round of quantitative easing has caused a large drop in mortgage rate expectations."
Duncan went on to say that the September jobs report showed strong improvements including a general increase in employee earnings and a decline in unemployment. These factors are combining to improve consumer confidence and buoy the housing market. According to the report, 41 percent of consumers believed the economy is on the right track in September 2012 - up from 33 percent the previous month. Another 53 percent believe the opposite and claim the economy is on the wrong track - down from 60 percent in August 2012.
New businesses located in Richmond
Contributing to the improving local economy are the new businesses opening in Richmond. Richmond BizSense reports that the Natural Running Store, an online retailer of minimalist running shoes, recently relocated its headquarters to Richmond from Dallas. The founders of the company claim that the reason behind the move was that a majority of product orders came from the East Coast.
Natural Running Store's move to Richmond is just one example of new industry coming to the greater metro area.