From the Overall Summary Section of the
Federal Reserve Beige Book released on October 16, 2013
“Construction and Real
Estate”
Construction
and real estate activity continued to improve in September.
Residential construction increased moderately on balance,
growing at a stronger pace in the Minneapolis and Dallas Districts but only
slightly in Richmond and Philadelphia. Multifamily construction remained
stronger than single-family construction in a number of Districts. Residential
real estate activity continued to improve at a moderate pace in most Districts,
as home sales and prices continued to rise and inventories remained low. Home
sales in the New York and Dallas Districts were strong, with the exception of
the Jersey Shore, which is still recovering from Hurricane Sandy. The
Philadelphia, Atlanta, and Chicago Districts experienced a more modest
improvement in home sales. A number of Districts reported concerns from
homebuilders and realtors over rising mortgage rates. However, contacts in the
Dallas District indicated that rising interest rates were not hurting
affordability and contacts in the Boston District suggested some boost to
activity by homebuyers entering the market in anticipation of future increases
in rates.
Nonresidential construction activity remained modest, but
varied by market and District. Growth was strong in the Minneapolis District,
but up only slightly in Richmond, Atlanta, and Philadelphia. The Cleveland,
Chicago, and St. Louis Districts reported increased activity for industrial
building, Cleveland noted strong demand from the healthcare sector, and
redevelopment of vacant retail space picked up in Boston. Leasing activity
continued to improve modestly in most Districts, but was particularly strong in
the Dallas District. A number of Districts reported that vacancy rates continued
to fall, rents rose, and the outlook for commercial real estate was generally
positive.
Here’s
a link to the complete Beige Book Report released on Oct 16th.
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