Housing Market Slows Down Amidst Rising Inventory, While Manufacturing Activity Surges in the Philadelphia Area

In March, the number of homes for sale increased for the third consecutive month, reaching 1.11 million compared to 1.06 million in February. Despite this rise in inventory, home sales decreased by 4.3% from February. High mortgage rates that continue to impact the housing market are one factor contributing to this decrease in sales. Although the number of homes for sale has increased by 14% compared to a year ago, it remains significantly lower than the 1.7 million typically for sale before the pandemic.

In contrast, manufacturing activity is on the rise in the Philadelphia area, with the industry index reaching its highest level since April of the previous year. The Philadelphia Federal Reserve’s Manufacturing Business Outlook Index increased by 12 points to reach 15.5 in April, with over a third of firms reporting a growth in activity. The survey also indicated a rise in new orders and shipments during that month. Signs of price increases were also evident in the manufacturing sector, with the prices paid index reaching its highest level since December