Buyer Traffic Slows; Regional Housing Gains Soften

Business Contact Surveys: Construction and Real Estate

January 2014

Both Southeast builders and brokers reported that sales remained ahead of the year-earlier level in November, but brokers indicated that sales continued to slow.

The majority of brokers and builders continued to report that home inventory levels were down from one year earlier.

The majority of builders and brokers continued to indicate home price appreciation in November.

Nearly half of brokers indicated that buyer traffic was down on a year-over-year basis. More builders also started to indicate that buyer traffic is declining. Many comments suggest the decline is seasonal.

More brokers and builders expect to see home sales growth over the next few months compared to last month's report, although expectations have weakened somewhat from one year ago.

Fewer builders expect construction activity to increase over the next three months compared to one year ago, although more builders expect activity to increase than in recent reports.

Note: The poll results are based on responses from 43 residential brokers and 21 builders. Responses were collected December 2–12, 2013.

The housing survey's diffusion indexes are calculated as the percentage of total respondents reporting increases minus the percentage reporting declines. Positive values in the index indicate increased activity; negative values indicate decreased activity.