Fed: Housing Demand Slowing

Residential sales and housing construction remain at high levels but demand is slowing in some regions, according to a periodic report of economic activity by the Federal Reserve Board."Residential real estate activity remained generally strong, but reports that demand has eased have become somewhat more common," the Fed's Beige Book says. Federal Reserve Banks in Atlanta, Boston, Chicago, Kansas City (Mo.), and Minneapolis noted slower sales in some parts of their districts. The Richmond (Va.) district bank reported "continued strength in housing construction, but indicated that demand was easing in some parts of the district." Reports of economic activity from all 12 district banks were collected in early October. Meanwhile, the commercial sector continues to improve. "All of the districts reporting on commercial real estate conditions noted rising demand for office, retail, or industrial space," the Beige Book says.