Report from Richmond Fed - Dismal for Salisbury

According to the most recent data, economic conditions in Maryland generally improved, with a sizable employment gain, a declining unemployment rate, and generally upbeat housing market reports.

Labor Markets: Total employment in Maryland increased by 9,300 jobs (0.4 percent) in April—the largest single month gain since May 2012. The professional and business services industry added the most absolute jobs (3,100 or 0.7 percent) while the logging, mining, and construction industry had the largest percentage growth of 1.3 percent (1,900 jobs). On a year-over-year basis, state payrolls grew 1.0 percent (24,900 jobs), led by an expansion in professional and business services of 2.1 percent (8,700 jobs). Since April 2013, federal government payrolls contracted by 2,400 jobs but the total government sector in Maryland expanded by 5,200 jobs due primarily to gains of 7,400 positions in local government. 

Employment reports at the metro level were mixed in the month and on a year-over-year basis with only the Baltimore-Towson and Hagerstown MSAs improving over both periods.

Household Conditions: According to the household survey, the unemployment rate in Maryland fell 0.1 percentage point to 5.5 percent in April, marking its lowest rate since November 2008. Additionally, the civilian labor force grew over the month, but not by
enough to impact the participation rate, which was unchanged at 66.6 percent.

Meanwhile, in the first quarter of 2014, the share of mortgages 90+ days past due fell 0.3 percentage point to 3.3 percent as the subprime delinquency rate fell from 12.5 percent to 11.4 percent. The prime delinquency rate, however, rose 0.1 percentage point over
the quarter. In the fourth quarter of 2013, real personal income in Maryland grew 0.5 percent, but was unchanged from the fourth quarter of 2012.

Housing Markets: Recent housing market reports were somewhat mixed but generally upbeat. Maryland issued 1,290 new residential permits in April, up 21.8 percent from March but down 25.9 percent from April 2013. Housing starts followed the same trend, increasing 6.0 percent in the month but decreasing 13.7 percent over the year.

According to CoreLogic Information Solutions, home values appreciated 0.7 percent in March and 6.3 percent since March 2013. 

At the metro level, home price growth varied over the month but prices grew in every metro area except the Salisbury MSA over the year. Meanwhile, permitting activity in the state’s MSAs picked up in April except in Salisbury, and increased in every MSA except Hagerstown since April 2013.

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