RE Market Still Viewed Favorably

Federal bank examiners continue to view the current residential real estate market in a positive light, according to data released Monday by the Federal Deposit Insurance Corp. In the FDIC's quarterly Survey of Real Estate Trends, 61% of 299 senior examiners and asset managers polled by the agency viewed their local housing markets favorably, down slightly from 63% when the last poll was conducted in April -- but up from 51% a year ago.The survey shows that 68% perceived existing home sales as "above average" in their local market, compared with 63% in April and 49% in July 1997. Roughly 74% of those polled in the survey noted increasing prices for existing homes, up from 73% in April and 56% a year ago. Despite the favorable assessments on the residential side, reaction to commercial RE market conditions was not as positive, the survey adds. Fifty-two percent of the examiners and asset managers polled saw improvements in their local commercial market, down from 56% in April.