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August 2009
District home sales remained at weak levels in June and July; however, business contacts and recent data releases continued to report improvements in District housing markets. Home sales in particular have picked up across District markets according to many Realtor reports. Florida Realtors noted that July home sales growth remained positive year-over-year while elsewhere in the District declines moderated. The low end of the market continued to dominate activity, but strengthening demand for midpriced homes was reported as well. Builders continued to report low levels of home sales and construction activity, and data releases reinforced this view. However, permit data improved from recent historical lows. The outlook among both home builders and Realtors indicated that sales improvements would continue over the next several months.
Commercial development remained weak across the District. Vacancy rates continued to trend up, with contacts noting greater downward pressure on rents. Developers continued to report fewer backlogs, and more projects were delayed. Most commercial contacts anticipate weaker activity for the rest of 2009, which will carry over into 2010. Recent data support the view that commercial construction activity will continue to soften.
