Residential real estate markets have exhibited “signs of improvement” since May, according to the Federal Reserve's “Beige Book” report released Wednesday afternoon.
All 12 Federal Reserve banks cited increases in home sales, prices, or housing construction in their districts, the
In general, the district banks said the outlook for the housing market is “positive with continued increases in activity expected.”
However, the Boston, Cleveland and Kansas City banks indicated that “projected gains” in their districts would be “more modest.”
The Boston, Atlanta and Dallas banks noted that the inventory of homes for sale in their districts has been declining, placing upward pressure on prices.
The New York, Richmond and San Francisco banks noticed a “reduction in the stock of distressed properties.” But the Philadelphia and Kansas City banks remain concerned about shadow inventory entering the market.
Federal Reserve monetary policy officials noted at the conclusion of their Aug. 1 meeting that the housing market is showing “further signs of improvement.” But they also noted in the minutes of the Federal Open Market Committee meeting that construction and sales activity remains at “depressed” levels.
