The Federal Reserve Beige Book [1], a Federal Reserve System publication about current economic conditions across the 12 Federal Reserve Districts, reported modest growth in its latest release. In housing specifically, the Book notes that homebuilders reported little change year-over-year.
According to the last Book, eight of the 12 Federal Reserve Districts reported modest to moderate growth, home sales were mostly flat to up, and residential construction experienced more widespread growth compared to the prior report, when eight of the 12 Federal Reserve Districts reported modest to moderate growth. According to the newest release, home sales were mostly flat to up, and residential construction experienced more widespread growth compared to the prior report. Construction and leasing activity of nonresidential real estate continued to increase at a modest pace.
Home sales remained on the rise in the Dallas district, but tornadoes in the area have caused a demand for rentals as rents rose slightly. Sales were up year over year partly due to lower mortgage rates, and most builders were meeting or exceeding expectations.
Additionally, in the Dallas district, the Fed notes that vacancy rates have been addressed. Builders have managed to sell off inventory, bringing the supply of finished vacant homes down to normal levels. Some builders were able to pass through select price increases, improving their margins, and outlooks were mostly optimistic.
The San Francisco district also saw modest real estate growth, and lending grew further. In this East Coast district, the Beige Book found that robust demand continued to outpace supply and push up prices in the Mountain West, especially in metro areas like Boise. In Seattle and Los Angeles, contacts noted a mixed picture of the residential market, with some indicating that time-on-market for houses increased amid flagging demand and others observing robust construction activity and sales.