Residential real estate improving while commercial sector lags, Federal Reserve Beige Book report shows

Miami /
Dec.December 02, 2009 06:45 PM

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

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

Related Articles

Placeholder image
Placeholder image
Placeholder image
Placeholder image
Placeholder image
Placeholder image
Placeholder image
Placeholder image

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.