WASHINGTON (AP) - Orders to U.S. factories for big-ticket manufactured goods shot up 1.9 percent last month while sales of new homes hit an all-time high as the economy demonstrated further evidence of a strong rebound in April.
The Commerce Department said the increase in demand for durable goods, items expected to last at least three years, was the best showing in five months. Orders rose by $3.71 billion to a seasonally adjusted $200.3 billion last month, reflecting strength in autos and aircraft.
In a second report Wednesday, the department said sales of new single-family homes rose by 0.2 percent to a record annual rate of 1.316 million units in April, up from a revised March level of 1.313 million units, which had also been a record.
The strong demand for new homes pushed up the median price to a record, as well, of $230,800. That was up 6.1 percent from the March median price of $217,500. The median is the midpoint at which half the homes sold for more and half for less.
The strength in home sales last month was led by a 37.2 percent surge in the Northeast, which pushed the sales rate to 107,000 homes, the strongest pace since January 1997. Sales were also up 2.8 percent in the Midwest to an annual rate of 368,000 units.
However, sales fell by 5.3 percent in the South to an annual rate of 630,000 units and were down 0.5 percent in the Midwest to an annual rate of 211,000 units.
The strength in new home sales followed a report Tuesday that sales and prices of existing homes also set records in April.
In a speech last week, Federal Reserve Chairman Alan Greenspan said he did not believe there was a national housing bubble, similar to the stock market bubble that burst in early 2000. But he said there were a "lot of local bubbles."
Both the increase in new home sales and durable goods orders in April were better than analysts had been expecting and provided further evidence that an economic slowdown in March would likely be short-lived.
The 1.9 percent jump in durable goods orders, the largest advance since a 2 percent increase last November, followed three straight monthly declines including a sharp 1.6 percent drop in March. That decline had raised worries that the economy could be faltering as consumer and business confidence were jolted by higher energy bills.
But several stronger-than-expected reports of April activity have eased fears of a prolonged slowdown.
The government will release a revised report on economic growth in the January-March quarter on Thursday, and many analysts expect the rate of increase in the gross domestic product will be revised upward to a healthier 3.6 percent rate from the originally reported 3.1 percent GDP growth rate, which had been the slowest pace in two years.
The jump in April orders provides hope that the economy will continue on a solid growth path in the months ahead. Leading the advance was an 8.2 percent surge in orders for transportation equipment, the biggest increase since last November.
Demand for motor vehicles and parts rose by 3.4 percent while orders for commercial aircraft were up 28.2 percent and demand for military aircraft rose by 26.3 percent.
Excluding transportation, orders would have edged down a slight 0.2 percent in April.
Demand for computers and other electronic products fell by 5.8 percent after having posted a 4.7 percent gain in March while orders for communications equipment were off an even larger 18.8 percent, reversing a 10.3 percent jump in March.
Orders for non-defense capital goods, viewed as an indicator of business plans to expand and modernize, rose by 3.8 percent in April, the best showing since a 7.7 percent surge last November.
Orders for business capital goods had been weak in the first three months of this year, reflecting the expiration at the end of last year of popular tax deductions which had been designed to encourage sales of business equipment as the country struggled to emerge from the 2001 recession.
Businesses, rushing to take advantage of the expiring tax breaks, had pushed up total durable goods orders by 1.5 percent in December and 2 percent in November.
posted on May 25, 2005 08:59:23 AM
Stone, I saw this on the news and I couldnt believe the national average for a home is now considered at 206K!!! I think its a conspiracy to drive home prices up and up and up!
They sure do know how to make some money in real estate! But alot of the people involved with it are worse than used car salesman.
posted on May 25, 2005 09:08:25 AM
Interesting that you revel in the first positive report during the Bush Economy. So, we've had about 15 quarters of a declining economy, and the first quarter of an increase, you are here to celebrate. I guess you have to find something to grasp onto as the Bush Admin continues their downward spiral into the toilet.
I'm not a Democrat, I have no intentions of ever becoming a Democrat, but don't you think that an "in your face" attitude like you made would be better timed when Bush's economy shows a net gain? Your comment is like watching a basketball game between the New Orleans Hornets and the Phoenix Suns. It would look stupid for the Hornets to celebrate one basket in a 40 point loss.
If Bush creates one net job in his Administration, I guarantee the neocons will jump up and down, run out into the streets, shoot their guns in the air, scream praise to Allah... oh sorry, wrong group of fanatics.
Did the neocons do that under the Clinton Administration when he created millions of new jobs and had a booming economy? Hell no. They focused on a sex scandal in the White House. How much did Kenneth Starr spend on that??? Exactly...
I might also add, that I didn't think the article was all that positive. I think it was a mixed report. Some positives, some negatives. You also have to consider that the housing market is driven mostly by low interest rates. Low interest rates are created by a failing economy. People who could afford renting an apartment found interest rates low enough to pay less to own a home. The rental market is horrible right now in Portland. The apartment we rented 4 months ago is still available. When we told them we were moving, they knew the rental market was horrible and they attempted to keep us by lowering our rent by $100 a month.
[ edited by rustygumbo on May 25, 2005 09:34 AM ]
posted on May 25, 2005 11:12:57 AM
Yep...can't post ANY good news about the economy, job creation, etc. The lefties don't LIKE good news.
And this ISN'T the FIRST good report. This is just BETTER than most of the GOOD reports have been.
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"Did the neocons do that under the Clinton Administration when he created millions of new jobs and had a booming economy?"
LOL....no, because most informed voters know HE didn't create those jobs. It happened in SPITE of him. But he was lucky our economic expansion happened, on it's own, DURING his administration. Doesn't mean HE takes the credit.....as HE, HIMSELF has acknowledged and stated pubically.
And many economists agree that the tech boom happened BECAUSE clinton was distracted with his embarassing behaviors, so he wasn't focused enough to deal with the economy - to mess it up.
Most ecomonists agree NO President creates jobs. Anything else is just partisan politics as usual.
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Four More Years....YES!!!
posted on May 25, 2005 11:21:05 AM
dbl - Just fyi file Many believe the 'average new home price' and 'median' price are one in the same, but they're not. Average would be taking all the prices, dividing them by the number sold to arrive at an 'average' price. 'Medium price' is a statement that half the homes sold were above that cost ...and the other half below.
posted on May 25, 2005 12:25:59 PM
And what makes her think that she knows more about the housing market than Dbl??? S'pose it's her little divination pointer that's always askew?
posted on May 25, 2005 02:04:15 PM
dbl - You may have already known that information....my intent was just to make you aware IF you didn't...since you used the term 'average'.
It certainly wasn't meant as an insult, put-down or to embarass you in anyway. I hope you knew that.
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Four More Years....YES!!!
posted on May 25, 2005 02:20:47 PM
oh yeah, Linda. No problem.
My only thought was I thought the median and average were about the same @ somewhere around 200K so that is why I didnt reply to it. If I heard it right, there was only a margin of about 6-10K difference. I still think that is high for a national average - dont you?
p.s.: I am always glad when someone has more information than I've previously been aware of.
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[ edited by dblfugger9 on May 25, 2005 02:28 PM ]
posted on May 25, 2005 03:10:17 PM
Speculators Try to Cash In on Housing Boom
Home Sales at Record High as Investors Seek Quick Profits
May. 24, 2005 - A speculative fever has taken hold of the real estate market, attracting a whole new class of investors looking to get rich quick.
April home sales came at the fastest pace in history -- according to the National Association of Realtors -- selling at an annual rate of 7 million homes a year.
The boom has pushed housing prices to an all-time high. The median price of a home sold last month was $206,000.
Almost a quarter of the homes are being bought by speculators, who don't intend to live in the homes but instead plan to make money off their investment.
Two years ago, Anthony Behary was repairing transmissions, making an annual salary of $40,000. Today, the former mechanic is a full-time real estate investor.
Earned $120,000 in First Year
"In the first year of business doing real estate, I made $120,000," Behary said. "I tripled my income."
Behary is one of a growing legion of Americans trying to cash in on real estate values that seem to go nowhere but up.
Earlier this month, 46,000 Americans hoping to get in on real estate frenzy packed the Los Angeles Convention Center for a Real Estate Wealth Expo -- the slogan: "One Weekend Can Make You a Millionaire."
Home prices have been increasing at the fastest pace in 25 years -- up 15 percent over last year -- while the stock market goes nowhere. Stock investment clubs are down 16 percent since 2003 while real estate investment clubs are multiplying -- up 45 percent since 2003.
Experienced real estate investors say many of these stock market refugees are late to the party and have unrealistic expectations.
"A lot of people were burned in the stock market, and there will be people who will be burned in real estate," said James Smith, president of the Houston Realty Investment Club.
Behary, the mechanic turned real estate investor, isn't worried about getting burned. Later this week, he expects to get a check for $65,000 -- his profit on the sale of a house he bought just five months ago.
ABC News' Betsy Stark filed this report for "World News Tonight."
posted on May 25, 2005 05:19:55 PM
so my question is..if the economy is down like all the democrats claim,where are the people getting the money to buy these expensive homes??
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Baseball season has started,but they have it all wrong.3 strikes and you're out,4 balls you walk.I can tell you right now a man with 4 balls could not possibly walk
posted on May 25, 2005 05:46:44 PM
GREAT question, classic.
but I'm sure you've noticed by now...the left doesn't usually *answer* questions posed to them. But they'll demand you answers their's with a yes or no only response.
But seriously...pay attention...few answer the questions put to them.
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Four More Years....YES!!!
posted on May 25, 2005 05:53:28 PM
Classic, all ya need is a decent job, low debt, and a good credit report and you too can be mowing your way through homeowner bliss!
posted on May 25, 2005 07:47:34 PM
Housing is almost cheaper than paying rent. Luxury Apts here run about $900.00 and that doesn't include heat and utilities. With the special home loans they offer your better off buying.
I agree about not answering questions. What are they afraid of.
And I'm proven correct again! When was she ever proven right and then she says again.
I think the "lefties" like doom and gloom. I bet they don't even enjoy the nice weather.
posted on May 26, 2005 12:31:39 AM
"""but I'm sure you've noticed by now...the left doesn't usually *answer* questions posed to them. But they'll demand you answers their's with a yes or no only response. """
Uh, linda, there are so many questions you have refused to answer I don't have time to post them all. Buit here's my favorite that you still refuse to answer:
Isn't a person who goes through the trouble to find out someone's name and post it an obsessive stalker?
posted on May 26, 2005 09:55:08 AMUh, linda, there are so many questions you have refused to answer I don't have time to post them all. Buit here's my favorite that you still refuse to answer:
Now isn't that ironic. Cathy cowfarm spews more garbage here than any other person and when she gets called on it, she back pedals more than anyone here. But then again, she is very much the typical lefty in diverting attention away from there short comings to issues that really don't exist.
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Alive in 2005
posted on May 26, 2005 09:58:58 AM
stonecold613
posted on May 26, 2005 09:55:08 AM
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Uh, linda, there are so many questions you have refused to answer I don't have time to post them all. Buit here's my favorite that you still refuse to answer:
Now isn't that ironic. Cathy cowfarm spews more garbage here than any other person and when she gets called on it, she back pedals more than anyone here. But then again, she is very much the typical lefty in diverting attention away from there short comings to issues that really don't exist.
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posted on May 26, 2005 10:09:39 AMIsn't a person who goes through the trouble to find out someone's name and post it an obsessive stalker?
Again, you are diverting the real issue and have a very short memory. You brought that on yourself in a thread when you asked if anyone can find your real name. But like most Demomorons, you feel the need to blame others for your short comings.
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Alive in 2005
posted on May 26, 2005 10:17:07 AM
stonecold - Anyone who reads ANY thread here can easily see she's the one 'stalking' and harassing others, disrupting each and EVERY thread. Even in the joke thread....can't stop herself. It's not surprising she can't stay on any topic being discussed....
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Four More Years....YES!!!
posted on May 26, 2005 10:35:48 AM
linduh you are hilarious even if you don't know it.
You really think answering posts is stalking? Then everyone who posts here is a stalker...you shouldn't be throwing accusations around like that
Ya, linduh, it's so obvious I'm the ONLY poster here who doesn't stay on topic....you're babbling.
Please explain how posting is "disrupting every thread" ?????
No, I disrupt YOU and your ridiculous blather and you don't like that
You support an obvious liar, stonecold, who lies"You brought that on yourself in a thread when you asked if anyone can find your real name. "
Ya, typical Repug ...no responsibility for their own actions..."somebody else MADE them do it"
posted on May 26, 2005 10:56:22 AM
Linda, she will not let it go. Its the only game in town for it. Too bad, she knows not what she plays with you either.
Many believe the 'average new home price' and 'median' price are one in the same, but they're not. Average would be taking all the prices, dividing them by the number sold to arrive at an 'average' price. 'Medium price' is a statement that half the homes sold were above that cost ...and the other half below.
