While residential sales remain at low levels, some Federal Reserve district officials are noticing increased foot traffic at open houses with their contacts expecting a bounce in home sales this spring, according to the agency's new 'Beige Book.'
"Kansas City contacts anticipate a seasonal surge in sales activity this spring. Atlanta, Dallas, and San Francisco also expect modest improvements," the Fed says in its report.
The Fed conducted its periodic survey of economic activity in early February, releasing its findings late Wednesday.
But those surveyed also signaled a mixed response in terms of demand for residential mortgage loans. "Demand for residential real estate loans increased in Philadelphia, Atlanta and Dallas, but were weaker in New York, Cleveland, St. Louis and Kansas City," the survey found.
Reports on home values also were mixed. Contacts in Atlanta and Kansas City noted "downward pressure" on prices, while Cleveland and Chicago contacts noted "little" change.
"Home prices continue to fall according to Philadelphia reports, but mainly at the high-end of the market," the Beige Book says.
