House prices in New England are rising significantly faster than the national average, with Vermont leading the nation and Rhode Island just slightly behind, with the third fastest house price growth for the second quarter of 2024, according to the Federal Reserve Bank of Boston.
The Bank’s most recent New England Economic Conditions Report says New England house prices rose by 7.9 percent in the second quarter, well above 5.7 percent nationally, according to the Federal Housing Finance Agency House Price Index.
Vermont, at 13.3 percent, saw the fastest housing price growth in the nation, with Rhode Island third at 10 percent, according to the Boston Fed report. The lowest growth in the region was Maine at 6.3 percent, still considerably higher than the national average.
Housing prices contributed to a regional inflation of 3.5 percent as measured by the Consumer Price Indes, compared to 2.9 percent nationally during the second quarter. This week, the CPI for August was reported at 2.5 percent nationally, the lowest since February 2021.
That was the fifth consecutive month that the CPI has fallen, leading to widespread speculation that when the Federal Reserve meets on Sept. 18 it is likely to reduce interest rates by a quarter to a half percent.
Meanwhile, the Boston Fed has found payroll employment rising, but unemployment also rising slightly, Consumer confidence was up,
In another measure of the local economy, University of Rhode Island Economist Leonard Lardaro, who produces a monthly Current Conditions Index, reported robust numbers for June, the latest period reported. Lardaro’s CCI, which measures a dozen economic indicators, with 50 and above showing growth, and less than 50 the economy retracting. For June, the number was 83, compared to 50 a year ago.
Here are some of the other highlights from the Boston Fed’s September report:
Payroll employment rose 1.2 percent in New England from July 2023 to July 2024.
Employment in each New England state has grown beyond pre-pandemic benchmarks.
From the start of the pandemic to July 2024, construction has been the fastest growing employment sector in New England at 6.9 percent, followed by professional and business services (5.2 percent), and education and health care (2.7 percent).
Unemployment in New England was 3.4 percent in July 2024, an increase of 0.3 percent from July 2023. The lowest unemployment rate in New England was Vermont at 2.1 percent, and the highest, Rhode Island at 4.5 percent.
From July to July, wages increased by 3.5 percent, and total compensation by 3.3 percent. CPI was also up 3.5 percent, the same as the region’s wage increases. From July to July the national CPI rose 2.9 percent with that figure dropping to 2.5 percent in August.
Consumer confidence rose in New England in August, while it decreased slightly in the United States, according to Conference Board’s Consumer Confidence Index.
Some of the highlights of Lardaro’s Current Conditions Index:
The CCI increased for five of the six months in 2024.
Ten of the 12 CCI indicators improved over last year, leading Lardaro to write “at long last, Rhode Island’s economy has definitely moved out of ‘first gear.’”
“An improving economy is causing more unemployed persons to begin searching for work.”
Manufacturing wages increased by 3.2 percent.
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Publish date : 2024-09-14 18:45:00
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