The Center for Real Estate Research at Washington State University reports the sales of existing homes in the state dropped 30 percent in the first three months of the year, compared with a year earlier.
The median resale price — half were higher, half lower — was down 2 percent statewide to $293,600. The survey doesn’t include new homes. But the center also reports building permits were down 47 percent. The biggest declines in home resales were largely in the Puget Sound area. The center reports a 52 percent drop in Pierce County, 47 percent in Snohomish County and 44 percent in King County. Spokane County was down 61 percent.
Deere profits rise 22 percent
Deere &Co., the world’s biggest maker of farm machinery, said Wednesday its second-quarter profit rose 22 percent, propelled by lofty crop prices that stoked global demand for its farm equipment despite a faltering U.S. economy. But the Moline, Ill.-based company warned that rising costs of such raw materials as steel could cut into its earnings over coming months, sending its shares down nearly 10 percent Wednesday. Deere also said it was seeing spot parts shortages “cropping up.”
Macy’s stores lose $59 million
Macy’s says it lost $59 million in the first quarter because of lower sales and the cost of consolidating business units that should save money starting next year. The department store operator said Wednesday that it lost 14 cents a share in the three months ended March 31, compared with a profit of $36 million, or 8 cents a share, in the same quarter a year ago. Revenue was $5.75 billion, down from $5.92 billion a year ago.
Airlines consider work alliance
United Airlines and Continental Airlines Inc. are talking about forming an alliance to gain some benefits of working together without going through a merger, which Continental rejected last month, a person close to the talks said Wednesday. United is still pushing ahead with negotiations aimed at a combination with US Airways Group Inc. but would not pursue both deals, said the person, who was not authorized to speak about the matter and requested anonymity. United, the nation’s second-largest carrier, is expected to take up the matter Thursday at a meeting of parent UAL Corp.’s board of directors.
Consumer prices slow in April
Prices slowed last month despite the biggest jump in food costs in nearly two decades. But with oil near record levels, Americans should brace for more pain at the pump in the months ahead. The Labor Department reported Wednesday that consumer prices edged up 0.2 percent last month, slightly lower than expected and better than the 0.3 percent rise in March. The lower inflation reflected a flat reading for energy, which helped offset a 0.9 percent jump in food. That was the biggest one-month surge since a 1.5 percent increase in January 1990. Last month’s increase was driven by widespread increases in a number of areas from bread, butter and margarine to milk and coffee.
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