Residential Real Estate Newsroom

Federal Reserve Districts On Real Estate and Construction

Residential construction remained strong in the period from late November to early January, and commercial real estate activity showed further signs of improvement. Home builders reported that starts were generally unchanged since the previous survey and well above year-ago levels.

Residential construction is expected to remain strong in most areas in the months ahead. Several builders reported difficulties obtaining some materials and said availability may continue to be a concern in the near future. Residential real estate agents said that home sales were flat or down slightly from the previous survey, but most agents expect home sales to pick up slightly in coming months. Inventories of unsold homes were said to be high in several markets.

Year-over-year home price growth remained modest in most of the district, although a few areas did experience significant appreciation during the past year. For the most part, real estate agents expect moderate growth in home prices heading forward. Mortgage lenders reported a decline in demand for both home purchases and refinancings. Lenders expect demand for home purchases to rebound somewhat in the months ahead, but refinancings are expected to remain soft. Commercial real estate activity in the district improved slightly since the last survey. Office vacancy rates either held steady or edged down. In addition a higher fraction of contacts than in the previous survey expected office markets to improve in the months ahead.