The Pending Home Sales Index (PHSI), a forward-looking indicator, edged down 1.0 percent from a downwardly revised level of 83.8 in February, and was 20.1 percent lower than the March 2007 index of 103.9, the National Association of Realtors (NAR) reported.

Geographically, the PHSI showed mixed results but all of the regions showed sharp declines when compared to a year ago.

1. The Northeast US saw a jump of 12.5 percent in March but this was still 15.4% lower than March 2007.
2. The Southern US states saw a decline of 0.1 percent - 26.7 percent lower than March 2007.
3. The index in the West declined 1.4 percent in March and is 9.5 percent below than a year ago.
4. In the Midwest, the index fell 10.4 percent in March to 74.1 and is 22.3 percent lower than March 2007.

The NAR expects existing-home sales to rise from an annual pace of 4.95 million in the first quarter to 5.82 million in the fourth quarter. For all of 2008, existing-home sales are likely to total 5.39 million, and then rise 6.1 percent to 5.72 million next year. “Although more than half of local markets are expected to see price growth this year, the aggregate existing-home price will decline 2.4 percent in 2008, driven by a relatively few markets that are very oversupplied,” Lawrence Yun, NAR chief economist said. The median price is forecast at $213,700 this year before rising 4.1 percent to $222,600 in 2009.

New-home sales are expected to fall 30.9 percent to 536,000 this year before rising 10.1 percent to 590,000 in 2009. Housing starts, including multifamily units, will probably drop 29.5 percent to 955,000 in 2008, and then rise 1.3 percent to 967,000 next year. The median new-home price is estimated to fall 3.7 percent to $238,000 this year, and then rise 5.4 percent in 2009 to $250,900.

The US Department of Labor issued it’s latest update on Productivity saying that productivity - output per hour of all persons - for the first quarter of 2008. The seasonally adjusted annual rates of productivity change in the first quarter were: 1.9 percent in the business sector and 2.2 percent in the nonfarm business sector. The productivity gains were a results of decline in work hours. With a slowing economy, companies are taking cost cutting measures resulting in payroll reduction and lower working hours.

The stock market was largely unmoved by the news and showed little or no gains / declines.

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