I continue to believe that consumer confidence is slowly being restored and that the real estate market will normalize when the American consumer feels good about the economy. We are seeing positive signs, including the Consumer Confidence Index, and are hopeful that the upcoming Spring market in the Durango, Colorado area may show a correlation to this increasing confidence level.

Consumer confidence shoots higher again

By Chris Isidore

NEW YORK (CNNMoney) -- Consumer confidence shot higher for the second month in a row in December, according to a survey from The Conference Board.

The research firm's overall confidence index, released Tuesday, jumped 9.3 points to 64.5. The increase follows a 14.3-point rise in November.

"After two months of considerable gains, the index is now back to levels seen last spring," said Lynn Franco, director of the group's research center. "Consumers are more optimistic that business conditions, employment prospects and their financial situations will continue to get better."

Still, Franco cautioned that it's too soon to tell if the year-end optimism is simply a rebound from declines earlier this year or a sustainable shift in attitudes.

The jump of almost 24 points since October is the biggest two-month increase since March 1991, when consumer confidence got a shot in the arm from the quick U.S. victory in the first Gulf War. But the recent increases follow sharp declines that occurred from July through October as both economists and the general public became worried that the U.S. was at risk of falling into a new recession.

"When we get to our low point in October, that was probably overdoing it," said Tim Quinlan, economist with Wells Fargo Securities, who said that reading was below the levels of the 2001 and 1990 recessions. "I don't think things were that bad then. I don't know that things are that great now, but it does signal that consumers were feeling better going into the holidays, which is a key time for retailers."

Helping to lift confidence is the fact that since mid October stocks have rallied, gas prices have fallen and the labor market improved with both better hiring and a decrease in the number of layoffs.

While the survey found that only 6.7% of consumers believe jobs are now plentiful, that's nearly double the 3.6% who felt that way in October. Those who believe the job picture will be better six months from now rose to 13.3% from 10.8%.

Most importantly for consumer spending, those who expect their own income to increase in the next six months rose to 17.1%, outpacing the 14.4% who expect their income to fall. This is the first time since April that the percentage of people who expect their income to improve topped those who expect it to drop.

Avoiding Christmas Tragedy: Fire Safety Check

There are so many fun and festive things about the holiday season. But, it is also a time to practice safety, especially with respect to avoiding holiday fires. I'm reprinting the following article about fire safety checks from the Southwest Home Inspection:

Avoiding Christmas Tragedy: Fire Safety Check

Each year, we hear of home fires occurring during the holiday season. Sometimes lives are lost. Sometimes an entire home is lost to flames, and visions of little ones whose presents are gone can generate a longing to help. Holiday fires are not inevitable; use this advice to keep them from happening.

* Have a working smoke detector just outside the kitchen, near bedrooms, and on every level of your home.

* Place a chemical fire extinguisher near the kitchen range and make sure everyone knows how to operate it.

* Degrease the top of the stove, the oven, broiler, and range hood. Grease can ignite and cause a fire.

* When preparing a big dinner, make sure only one high-wattage appliance is plugged into an outlet or circuit. If you have a microwave, coffee pot, electric fry pan, and toaster running at the same time, you could be in danger.

* If it is very cold and you decide to use an electric heater, be sure it is not positioned near anything flammable including curtains and decorations. Unplug when you go to bed.

* Don't overload circuits with lighted decorations. Plug decorations into a power strip that will shut off if overloaded and has surge protector.

* When opening gifts, handle wrappings with care. Never allow combustible wrappings to pile up near a heat source. Make sure no one is smoking near such flammables.

* Be smart with candles. Put them out when you will not be nearby. Don't place a candle inside a bookshelf.

News Stories to Keep an Eye On

I can’t believe that Thanksgiving has come and gone and the Christmas holidays are fast approaching. We know you are looking ahead to the new year, as are we, even as we all hopefully enjoy the season with our family and friends. It is important to me to keep an eye on the national stories since they could have a big impact on home loan rates in the year to come. The ups and downs in the daily news stories can be confusing, but here are a few that I follow as Real Estate professional:

1. There is an interesting relationship between the U.S. housing market and the European financial crisis. Even though the news in Greece and Italy is troubling from a global financial perspective, the pessimistic news out of Europe could continue to benefit home loan rates in the U.S., as investors see U. S. Bonds (including Mortgage Bonds) as a safe haven.

2. Of course, home sales and the continued recovery of the U.S. real estate market is reliant on many factors, such as a strong stock market and lower unemployment rates. We saw U.S. stocks rally big on Wednesday following news from the Federal Reserve that it would work with other central banks to support the global economy. Then yesterday was mixed as investor concerns still apparently linger regarding the European crisis.

3. Another story brewing is whether we have another government "bailout" in the making with FHA. FHA has been a mainstay in the real estate financing world during these difficult times as it insures nearly 40% of new home mortgages in the U.S. A recent report by an independent auditor indicates that the FHA has just $2.6 in reserves, down from $4.7 billion last year. This financial situation is apparently being looked at seriously by Federal officials

I believe that the most important thing to keep in mind is that no matter what the national news, NOW continues to be a perfect time to purchase property in Durango, Colorado and take advantage of the historically low rates and great inventory!

If you have any questions, please do not hesitate to call me. You can reach me, Don Ricedorff, at The Wells Group 970-375-7014, don@frontier.net, or at my website at durangorealproperty.com.

Don Ricedorff is a licensed real estate broker in the State of Colorado, with 18+ years of experience, and he resides in Durango Colorado.He has numerous real estate designations, which have provided him with an unparalleled education to assist his clients. The designations include:

CRS, Certified Residential Specialist
CRB, Certified Residential Broker
CCIM, Certified Commercial Investment Member
CDPE, Certified Distressed Property Expert
ABR, Accredited Buyer Representation
GRI, Graduate of Realtor Institute
RSPS, Resort and Second Home Property Specialist
CIPS, Certified International Property Specialist
SRES, Senior Real Estate Specialist

He is also an active volunteer in the community and his church. His highest aspiration is spending time with his wife, Janet, and his three children Kelly, Katie, and Kyle. His other interests include playing tennis, fly fishing, hiking, boating, and water skiing.