The Federal Reserve released its most recent “Beige
Book Report” yesterday (Sep 4th, 2013).
This is from the overall “summary” section:
Real Estate and
Construction
Activity
in residential real estate markets increased moderately. The pace of sales of
existing single-family homes continued to increase moderately in most Districts.
Sales activity in New York City’s co-op and condominium market was described as
unusually strong in July and August, and the Cleveland District reported that
year-to-date sales of existing single-family homes were up substantially relative
to the same period last year.
Reports
from several Districts suggested that rising home prices and mortgage interest
rates may have spurred a pickup in recent market activity, as many “fence
sitters” were prompted to commit to purchases. Sales of new single-family homes
stabilized during the past few months in the Cleveland District after
accelerating earlier in the year. New home sales declined slightly in parts of
the Philadelphia and Richmond Districts in July. Philadelphia conveyed that
some borrowers apparently preferred to lock in a mortgage rate for an existing
home rather than wait for a new home to be completed and chance higher mortgage
rates. Home prices climbed in most Districts. Richmond and Boston reported that
houses in some areas were staying on the market fewer days and increasingly receiving
multiple offers. New York noted that bidding wars were common in the Buffalo
area. Many Districts reported that limited inventories of desirable properties
contributed to upward price pressures. Single-family home construction was
strong in the Minneapolis and Dallas Districts, and Chicago reported that a
number of builders are planning new developments to begin later this year.
However, several Districts noted constraints on the construction of
single-family homes. San Francisco pointed to shortages of construction
workers. In the Kansas City District, some building materials, such as drywall and
roofing shingles, were in short supply.
Demand for
nonresidential real estate increased. Office vacancy rates and other indicators in markets for
office space improved modestly in the major metropolitan markets in the New
York, Richmond, and St. Louis and Districts. Rents for Class B office space in
Manhattan have risen more than 10 percent over the past twelve months. Demand
for commercial real estate showed strong growth in the Dallas District and
moderate growth in the Minneapolis District. Both Districts reported new plans
for construction of industrial space. Philadelphia, Cleveland, Richmond,
Atlanta, Chicago, Kansas City, and San Francisco reported modest growth in
demand for commercial real estate. Philadelphia highlighted a shift in recent
leasing activity toward larger commercial spaces. The Boston, Philadelphia,
Cleveland, Atlanta, Dallas, and San Francisco Districts all reported increases
in construction of multifamily residential properties.
Here’s a link to the complete report
(narrative, District by District):
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