Are we turning the corner?

WASHINGTON (AP) -- Sales of new homes surged in April by the biggest amount in 14 years, but the median price of a new home dropped by the largest amount on record. The mixed signals left no clear picture of whether the worst of the nation's housing slump is over.

The Commerce Department reported that sales of new single-family homes jumped by 16.2 percent in April to a seasonally adjusted annual rate of 981,000 units. That was far better than the tiny 0.2 percent gain that economists had been expecting.
However, the median price of a new home sold last month fell to $229,100, a record 11.1 percent decline from the previous month. The big price decline indicated that builders are slashing prices in an effort to move a huge overhang of unsold homes.
The jump in sales was the biggest increase since a 16.4 percent surge in new home sales that occurred in April 1993.
However, analysts cautioned against reading too much into the big gain, especially in light of other surveys showing that builder confidence has sunk in recent months over worries that troubles in the subprime mortgage market will further crimp demand in coming months.
There was also concern because all of the strength in sales came in one region of the country, the Northeast, which saw a surge of 43.1 percent.
Sales were down 28.1 percent in the Midwest and 25.4 percent in the West. Sales fell a smaller 3.4 percent in the South.
The drop in median prices in April compared to March was a record one-month decline. If the April sales price was compared to the sales price a year ago, the decline was 10.9 percent, the biggest year-over-year drop since 1970.
In other economic news, the Commerce Department said that orders to U.S. factories for big-ticket manufactured goods posted a moderate 0.6 percent increase in April, helped by a continued rebound in business investment.
In a third report, the Labor Department said that the number of newly laid off workers filing applications for unemployment benefits rose to 311,000 last week, an increase of 15,000. But even with the gain, claims remain at a level indicating a healthy labor market.
While the increase in orders for durable goods was less than had been expected, the government sharply revised the March performance to show a 5 percent surge, much stronger than the 3.7 percent gain previously reported.
Analysts believe that U.S. factories, which have been buffeted by the weakness in housing and slumping demand for autos, are starting to stage a moderate rebound, helped by reviving interest on the part of businesses to spend money to expand and modernize.
The overall economy slowed in the first three months of this year to an annual growth rate of just 1.3 percent, the weakest performance in four years, as a steep slump in housing continued to weigh on the economy's performance.
Analysts are hoping that spending by consumers and businesses will be able to overcome the weakness in housing and keep the country out of a recession.
The report on durable goods offered encouragement in the area of business investment. It showed that demand for capital goods excluding airplanes, considered a good proxy for business investment, rose by 1.2 percent in April following, the second solid monthly increase.
The 0.6 percent rise in total durable goods orders came even though demand for transportation products fell by 1.3 percent. This reflected a drop of 10.7 percent in demand for commercial aircraft and a 1.9 percent fall in orders for motor vehicles.
Excluding transportation, orders would have been up by 1.5 percent, the same performance as in March.
There was strength in orders for primary metals such as steel which rose by 4.3 percent and orders for electronic equipment and appliances, which rose by 3.8 percent.
But demand was weak for computers, which fell by 7.8 percent, and communications equipment, which dropped 5 percent.

Memorial Day weekend is almost here!

Memorial day weekend is upon us and again our central Ohio weather has not failed us. By this I mean the heat is here and it looks like it is here to stay at least for the next few weeks. This is a great time not only to sit back and enjoy the weather with a cold beverage but also look at our surroundings and give thanks, to those brave men and women that have made the ultimate sacrifice in protecting our lives and our way of living.

Let us be mindful this weekend that there are thousands of American men and women fighting overseas. Take some time in the course of your day to reflect and offer a prayer so that we may welcome them home safely.

Do I need to sell my house?

It is now Spring in Ohio (I think...60 degrees today!) and many have asked do I need a new house? Should I sell? Is now the right time? The simple answer is.....YES! it is a great time. Although you can be led astray by news accounts of the current market. I will tell you there is no need to be discouraged after all if we listened to all of the "doom and gloom" in the news we'd never step off the front porch.

We all have at some point or another started asking ourselves "Do I really need a third (or fourth) garage? Do we really need more bathrooms so that WW III is not started in the confines of our hallway by our teenage daughters? Don't fret it is completely normal in certain circles to have conversations with yourself (Disclaimer: except in a psychiatrist office).

If you have had these thoughts, you are not alone ( I talk to myself all the time). Many people will have these conversations this year (Disclaimer: several will end up in mental institutions)and many will go looking for that "perfect" home. So don't let the news organizations get the best of you and realize that our economy is vibrant and growing, so go ahead and search for that ideal home, one that will put an end to those voices in your head!