Residential real estate markets "improved somewhat" in most parts of the U.S., especially in home sales, according to the Federal Reserve's Beige Book report released Wednesday afternoon.
The Fed's periodic survey of regional economic activity found that many of its contacts are "optimistic" about the outlook for home sales.
Federal Reserve Banks in Boston, Cleveland, Richmond, Atlanta, Kansas City and Dallas reported an increase in home sales from the first week in January to Feb. 17 when the district banks had to file their Beige Book reports.
"Home prices declined or held steady in many areas," the Fed said.
Federal Reserve chairman Ben Bernanke told Congress Wednesday morning that 30% of home sales involve foreclosed or distressed properties. Yet "home vacancy rates remain high, putting downward pressure on house prices," he said.
"More-positive signs include a pickup in construction in the multifamily sector and recent increases in homebuilder sentiment," Bernanke testified.
