![]() ![]() Home prices remain down from peak levels but have recently shown month-to-month improvement. The supply of existing homes for sale has remained low as homeowners have showed increased hesitancy to list homes for sale, especially if they financed at a low interest rate. Though home sales are down compared to a year ago, sales in many markets in this District have increased on a monthly basis, as buyer sentiment has modestly improved. Builders have been offering strong incentives to close deals.Ītlanta – Housing demand throughout the District has remained strong despite interest rate and home price volatility. However, fluctuations in mortgage rates have caused buyers to pull back, with pending sales and closed sales both down in this District. For-sale inventory remains constrained due to fewer people putting their homes on the market, but buyer traffic has been steady while the days on market has increased slightly in the last month. Richmond – Residential real estate respondents indicate in the report that the spring market is off to a good start, with sales prices continuing to appreciate, but not at the same pace as last year. Homebuilders have reported an increase in speculative construction projects in this District, as many buyers want to purchase and move into homes immediately, in part to avoid further rises in interest rates. New home builders have benefited from the unseasonably modest sales of existing homes as the resale market has slowed.Ĭleveland – Demand for residential construction and real estate has stabilized in this District, and contacts attribute this stabilization to the arrival of spring and flattening interest rates. Existing home sales have fallen moderately in this district, and prices have continued to rise as the market heats up again. Philadelphia – High interest rates have continued to dissuade existing homeowners from listing their house and losing their low interest rate. A key factor suppressing new listings is the prevalence of homeowners with historically low interest rates on their existing mortgages, reducing the incentive to sell and move.Ī strong economy and relatively high mortgage rates have pushed some movers to the rental market, boosting demand. Inventory remains exceptionally low and is restraining sales activity in much of the District. A New York City-area contact reports that the sales market in and around New York City has picked up strongly in recent weeks after a brief pause in early April, which was due to uncertainty in the banking sector.Īfter a slow start to the year, housing markets in upstate New York have also started to pick up, with bidding wars and multiple offers becoming more common. New York – The residential sales market has been strong across the District. The modest price growth in the Boston area marks a trend reversal from the preceding few months.Ĭontacts anticipate that, despite healthy buyer demand, home sales are likely to experience only a modest seasonal increase moving forward, owing to extremely low inventory levels. House price appreciation has slowed on average but remains slightly positive, with the exception that home prices in Massachusetts (not including Boston) have experienced modest declines from a year earlier. Louis, Kansas City Federal Reserve districts.įollowing are excerpts of statements on housing conditions from each of the 12 Federal Reserve districts.īoston – Contacts around the District attribute the still-low sales numbers to low inventories more than to weak demand, as slightly lower mortgage rates have helped bring more buyers to the market. In return, the lack of inventory of homes for sale pushed demand for rental properties in some areas - including New York, Chicago, St. The Beige Book also notes that “home prices and rents rose slightly on balance in most Districts, after little growth in the prior period.” “Residential real estate activity picked up in most Districts despite continued low inventories of homes for sale,” the report states. The Beige Book is a compilation of data and interviews with bank and branch directors, community organizations and economists from on or before May 22. ![]() All 12 Federal Reserve districts have seen issues with a lack of housing inventory, which is largely due to existing homeowners holding back on listing their homes after previously locking in low mortgage rates.ĭemand from the buyer side has remained steady or increased, however, and new home builders have responded to inventory shortages by increasing speculative inventory production, according to the Federal Reserve Beige Book, released Wednesday. ![]()
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