ECONOMY: AFTER A TOUGH YEAR, HOUSING SHOWS SIGNS OF IMPROVEMENT
Benjamin L. Varner, Chief Economist

High interest rates and low inventory make for a tough housing market currently. The Federal Reserve’s tightening of monetary policy over the last year has led to higher interest rates for mortgages which caused the affordability of housing to be reduced throughout the country. Sales of both existing and new homes slowed significantly in the second half of 2022. While existing homes sales continue to struggle, there have been some signs of a potential rebound in new home sales.

GENERAL FUNDS REVENUES SEE $677 MILLION IMPROVEMENT IN MAY, HELPING TO RECOUP A PORTION OF APRIL’S LOSSES
Eric Noggle, Revenue Manager

General Funds revenues bounced back nicely from April’s $1.8 billion decline with growth of $677 million in May, as compared to the same month the year prior. The May increases were experienced across the board, with the most significant growth coming from the Personal Income Tax and Federal Sources. Part of the reason for last month’s extensive declines was due to April having one less receipting day in FY 2023. This “lost” day was effectively made up in May, as the extra receipting day helped bolster this month’s revenue totals.
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When incorporating May’s revenue gains into the FY 2023 accrued total, General Funds base revenues are now ahead of last year’s pace by $484 million with one month remaining in the fiscal year. When including the revenue gains from ARPA reimbursement funds, the overall growth for the fiscal year improves to $809 million. While this year-to-date growth figure is well below the $2.5 billion high-water mark at the end of February, it is a noticeable improvement over the meager $132 million in growth that resulted after March and April’s sizeable declines.