Economist's Commentary: April 22, 2008

Quick Take on the Economy: April 22, 2008

By Lawrence Yun, NAR Chief Economist

An early April reading of manufacturing activity in the Richmond Bank region (encompassing West Virginia and Maryland to South Carolina) was stable, with neither a measurable increase nor decrease.
Shipments and new orders rose, but employment in manufacturing fell.
Outlook indices for six months from now were generally positive

U.S. home prices rose 0.6 percent in February based on loan information from Fannie and Freddie (which excludes subprime loans).
Evidently home prices are holding on in neighborhoods not heavily exposed to subprime loans.
The figures are seasonally adjusted so a month-to-month comparison can be made. From a year ago though, home prices are down 2.4 percent on a national basis.
The New England region had the biggest price gain during the month.

The economy and the housing market are soft and stable, but not crashing. They are not growing, either.
Outside the big markets of California, Florida, and a few additional states, home prices are growing in many areas. It appears they are growing more so in neighborhoods not exposed to subprime loans.

This is one in a series of commentaries by the Research staff of the National Association of REALTORS®. Read more commentaries >

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