Construction and Real Estate - September 2008

Construction and Real Estate Sections
Single-Family Residential: Home Sales
Single-Family Residential: Construction
Multifamily Residential

Related Links
Sixth District Business Contact Registration

Data and Analysis

Construction and Real Estate

September 2008

Overall, reports indicate that District housing remained soft, but year-over-year declines in sales continued to moderate by most accounts and were in line with national reports. Contacts reported that existing home inventories subsided while reports on new home inventories were mixed. Bank-owned properties continued to put downward pressure on District home prices. Modest declines in home prices were noted across much of the District, similar to those seen in national reports, while Florida home price declines remained more significant. Contacts noted that sales of repossessed homes made up a large share of home sales in some Florida markets. Construction remained at low levels across the District. Despite more positive news, the outlook remains subdued in large part because of weak economic conditions and financing issues.

Commercial development remained weak across the District. Vacancy rates were trending up in District markets, with greater availability of sublease space in some areas. Developers continued to report fewer backlogs. Contractors noted that credit tightening and rising costs were curtailing activity. Most commercial contacts anticipate weaker activity during the first half of 2009, and the degree of pessimism has grown from earlier in the year. Recent data support the view of continued softening in commercial construction activity.