March 2008

Overall reports on Sixth District housing remain weak. Data reflecting activity in January indicated sales growth was flat to slightly down on a year-over-year basis while home prices weakened further. Furthermore, home construction continued to moderate. Reports from contacts on activity in February indicated sales remained weak. Builders did note improved buyer traffic while Realtors reported traffic remained weak. Builders said that buyers were only interested in deep discounts. Both builders and Realtors indicated that many interested buyers found it difficult to qualify for a mortgage. Construction remained below year-earlier levels, and builders reported that inventories were near year-earlier levels. Inventory reports from real estate agents were mixed, but overall expectations about the next several months seem to have pulled back a bit.