The residential real estate market remains dim nationwide, with only faint glimmers of light in a few Federal Reserve Districts, according to the latest Beige Book.
The Federal Reserve said anecdotal evidence from the Boston, Atlanta,
Minneapolis, and Dallas Districts reported an increase in home sales over
the previous year's weak levels, but the Atlanta District's uptick was
concentrated in Florida.
The remaining Districts all reported stable or slower sales from the
previous Beige Book survey period ending July 27 as the
foreclosure backlog and unemployment continues to weigh heavily on
housing.
The Federal Reserve's Beige Book, published eight times per year, examines
current housing and other economic conditions based on boots-on-the-ground,
anecdotal information from bank and bank branch directors, key business
contacts, economists, market experts, and other sources.
The latest September 7 Beige Book, prepared at the Federal Reserve Bank
of Kansas City is based on information collected on or before August 26,
2011.
Here's a look at the most hopeful districts.
Boston>
States throughout New England cited increases in home sales in July
compared to last year, but say the struggling sales still reflect the loss
of the homebuyers' tax credit. Buyers appear apprehensive about economic
conditions.
The median sale price of single-family homes and condos remained were
virtually unchanged compared to a year ago. Sellers are sweating competitive
prices to attract buyers who, in turn, negotiate for even lower prices.
Most contacts did not express serious concern about the rising levels of
foreclosures heavy inventory, but were
pessimistic about any uptick in activity. Most contacts believe sales for
this year will fall below last year's levels and expect the same for as long
as two years.
Atlanta
Residential brokers in the district reported sales moving slightly ahead
of last year's weak levels. However much of the increase was Florida-based
where investors are taking up some of the slack. Outside
Florida, brokers found that sales were similar to last year's levels.
Inventories are up, keeping prices flat to slightly down from last year's
levels and the outlook is for little sales growth.
New home sales were similar to last years. With building off, inventory
levels declined but that didn't stop prices from falling.
Residential contractors did say home improvement construction improved
from earlier in the year.
Minneapolis
Residential construction increased from last year, according to sources,
as the value of residential building permits in July increased significantly
from the same period a year earlier in both the Sioux Falls and
Minneapolis-St. Paul areas.
Resale real estate markets also grew, with home sales in July up
significantly from the same period a year ago in the Minneapolis-St. Paul
and Fargo, ND markets. However, July pending sales of homes in the Sioux
Falls area decreased from July 2010.
Dallas
Beige Book contacts in the
single-family housing industry said new and existing home sales rose
slightly since the last report, even in a generally weak market. Existing
home inventories declined and new home inventories remained limited.
Respondents were cautious in their outlooks, but most expect a slight improvement in
sales in the second half of the year, with a slow recovery taking hold by
early 2012.
Apartment demand was strong during the reporting period, and rental rates
continued to rise. Contacts also noted increased sales of apartment
properties.
Financial contacts reported flat to falling loan demand and customers
approaching borrowing decisions with great caution even with competitive
interest rates.
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