Residential real estate has been showing signs of mending in both the sales and construction sectors, while commercial real estate continues to worsen, according to the latest Federal Reserve Beige Book report, released today. The Beige Book, published eight times per year, is a summary based on anecdotal information about current economic conditions gathered by all Federal Reserve Banks for their individual districts.
Though home price declines in the eastern region of the country have not yet reversed since the last report issued Oct. 21, most areas saw modest sales upticks fueled by the extended and expanded homebuyer tax credit, especially in the lower end of the market, the report says. In New York and Philadelphia, however, overall sales were described as steady or mixed. Sales in New York’s multi-family housing sector, in particular, suffered during the period.
New residential construction and commercial real estate both performed poorly, and between rising vacancies, declining rents, and little new development, the commercial market is still worsening, the report says.
Financial institutions reported a decline in demand for loans in New York, especially for residential mortgages. Nationwide, residential loans fare better than commercial loans, however, where banks in most districts reported weak demand. In New York, credit standards tightened on commercial loans. In the video below, CNBC delves into what the Beige Book’s results mean for the economy in the coming months. TRD