The University of Michigan publishes a consumer sentiment report each month that is closely watched by Wall Street.  In fact, the Wall Street Journal published a column today talking about the noteworthy improvement in consumer sentiment toward purchase homes.  Last month’s reading was 136 up from a low of 116 in September of 2006.  136 is the best reading since August 2005.

What’s interesting to note about the release of the November data is the comment about consumers looking for deals:

“‘Price discounts have dominated consumers’ purchase plans to a greater extent than ever before. ‘More consumers made their purchase plans for vehicles, furniture, appliances, home electronics, and other household durables contingent on the availability of price discounts than ever before in the more than 50 year history of the surveys,’ Curtin said. Nearly half of all consumers specifically cited price discounts when asked to explain the views on buying conditions.”

And here’s what was said about home purchases: 

“Home price declines have also become the most common factor cited by consumers in their evaluations of home buying conditions. The proportion of consumers that reported declines in home prices has doubled in the last three months, with nearly half of all consumers citing home price declines; in just three other surveys during the past fifty years have more consumers mentioned home price declines.”

Perhaps home prices are getting low enough for consumers to start snapping up the deals?  We are a consumer nation and it appears the retail mentality of shoppers may be coming to the real estate market.

I try to tell sellers, buyers are looking for deals.  If your home is not a deal in today’s marketplace, don’t expect it to sell.