Bankruptcy

Consumer Borrowing, Retail & Median Home Prices Boost Economy

By Chris Kramer

Government groups have published numbers for various economic indicators for March and April, giving a little insight into how our nation?s economic situation is changing. Here?s a summary of a few of these telling figures.

Consumer Borrowing Up in March

Since February of 2009, consumer borrowing in the U.S. has reportedly been falling, as we collectively try to claw our finances out of the red.

But March 2010 showed a surprising increase in consumer borrowing?a $1.95 billion increase, according to sources, which far outstripped the $3.85 billion loss many experts expected.

The increase could be a fluke, but it could equally be a sign that American households are becoming more optimistic about spending money.

Retail Rises Slightly in April

Retail sales blossomed in March, thanks in part to an early Easter. April?s numbers represent smaller growth, but growth nonetheless:

• March retail sales saw a 7.9 percent increase over sales in March of 2009.
• April retail sales grew only 0.5 percent compared with those a year earlier; however, in April 2009, sales decreased 2.7 percent from the previous year.
• Combined sales in March and April increased by 4.8 percent; January and February sales increased by only 3.3 and four percent.

While the slower growth in April may seem like cause for concern, many analysts are not worried, pointing to the fact that some growth occurred and that this year?s early Easter likely shifted people?s shopping patterns.

And, as one commentator in this New York Times article notes, economic recoveries don?t always happen linearly.

Median Home Prices

NPR reported this week that median home prices are on the rise in about 60 percent (91 out of 152) of the country?s cities surveyed.

This marks significant improvement from the final quarter of 2009, when only about 40 percent of median home prices were rising. Here?s a look at some of the hard numbers:

• 36 percent of all first-quarter sales were foreclosures and other distressed properties;
• Nationally, the median price was $166,100, about 0.7 percent below the median price in the first quarter of 2009;
• Prices jumped significantly in Saginaw, MI; Akron, OH; and Cleveland, OH; and
• Prices fell significantly in Orlando, FL; Ocala, FL; and Cumberland, MD.

Full post as published by The Bankruptcy Blog on May 17, 2010 (boomark / email).