See photos and updates from listings directly in your feed
Share your favorite listings with friends and family
Save your search and get new listings directly in your mailbox before everybody else
This week, the Consumer Confidence Index (CCI) fell sharply, dropping to its lowest level since mid-2020. According to The Conference Board, the index came in at 86.0 for April, down from 93.9 in March. That’s a big warning sign—not just for retail and job markets but potentially for residential real estate, too.
What Is the Consumer Confidence Index Really?
Think of the Consumer Confidence Index as a pulse check on how Americans feel about the economy—right now and in the months ahead. It measures two key things:
- How people feel about current business and job conditions
- How optimistic they are about the next 6 months
If consumers feel worried about layoffs, inflation, or their ability to earn and spend, this index drops. When the index falls consistently, it usually signals a broader slowdown in economic activity.
A Drop This Big Isn’t Just Noise
This month’s decline was the fifth in a row and the biggest since May 2020, when the economy was still reeling from COVID-19 lockdowns. That matters because, historically, steep drops in consumer confidence have preceded slowdowns in the housing market.
Let’s rewind:
- In 2008, confidence collapsed right before the housing bubble burst and triggered the Great Recession.
- In 2020, confidence nosedived at the start of the pandemic—and home buying came to a near halt before eventually rebounding.
Why This Impacts Housing
When people feel financially shaky, they pause major life decisions. That includes buying a house.
- Buyers may wait: People worry about losing income or being unable to make mortgage payments.
- Sellers may hold off: Homeowners don’t want to list if they think demand is dropping.
- Prices may cool: Less demand = more supply = slower price growth.
Housing affordability is already strained by high mortgage rates and stubborn home prices. A drop in consumer confidence could push even more buyers to the sidelines.
What to Watch Next
This dip in sentiment doesn’t mean a housing crash is coming—but it’s a flashing yellow light. Keep an eye on:
- Pending home sales (which have already slipped this spring)
- Mortgage applications
- Job growth and layoffs
If confidence keeps dropping, real estate agents, buyers, and sellers should prepare for a slower summer market.
