Charlie Scott works with builders to make customer satisfaction their market edge. In the process, he has looked at market data. In a column this month, he is optimisitic about 2012 because a couple of key indicators are rising.
One important indicator that has been rising in the recent past is consumer sentiment, and the Indianapolis-based Scott puts stock in it.
For home sales, he writes, "The closest predictor we could muster was consumer sentiment, and this study suggested there was a 4-6 month lag between improved consumer sentiment and new home sales activity."
So? "Consumer sentiment started upward three months ago, and according to the University of Michigan’s most recent press release, this consumer sentiment improvement accelerated in November! Play this forward and I think we are going to have a nicely improved spring 2012 selling season!"
His other indicator is his own business. "We currently work with 80 home builders throughout North America, and nearly every one of our clients is reporting improved market conditions," Scott states.
That, he writes, shows "a shift among home builders from 'surviving strategies' to more forwarding-thinking 'thriving strategies.'”