Categorized | Residential

Residential Real Estate Struggles Continue

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Despite positive reports regarding mortgage loan applications and low fixed-loan interest rates, the Federal Reserve is reporting that the residential real estate market is still struggling. According to the Federal Reserve Beige Book, a survey that analyzes and summarizes economic activity in the most important districts across the country, construction in the rental market has improved, though the housing market has done nothing to show any indication of improving.

The report shows that the struggles have been experienced in every district, though some have been hurting more than others. Along the east coast, only Richmond, Virginia has experienced some improvement. The rest of the districts reported a general reduction in buying activity. Minneapolis has had the greatest share of difficulty, which may be attributed to harsh weather and political distractions. Aside from Richmond, only the districts on the west coast have reported any kind of gains.

One can only hope that, with increased consumer spending and a rise in the number of loan applications, these struggles dissipate in the near future. However, both lenders and business continue to act warily, making the future a bit uncertain. The labor market is still weak at best, and lending standards remain stringent. The current debt-ceiling talks may be taking their toll as well on the market.

Although the news from the Federal Reserve’s Beige Book clearly is not ideal by any means, other regions not represented in the survey’s statistics are showing signs of growth. If that growth can trickle into some of these major markets, a turnaround in the residential real estate market may be coming after all.



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About Josh Johnson

Josh is the main writer for the Residential category. He also helps out on other categories when needed, mainly the International section.

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