Fed: Regional housing market still limping along
The Federal Reserve’s Beige Book report came out today.
First the somewhat good news: This past summer’s stock market volatility may not have harmed the economy as much as some feared. It’s still growing, though not at a level that will create a lot of jobs.
Second, the Boston region’s housing market is only performing so-so at best, with many real-estate professionals pessimistic about the immediate future. From the Fed report:
Notwithstanding substantial increases in home and condo sales in August compared to a year ago, residential real estate markets in New England remain weak and sluggish. …Residential respondents throughout New England describe buyers as cautious and patient, reflecting fears over job security. Some contacts express concern about the ability of consumers to secure home-purchase financing. At the same time, several contacts note an increase in investors purchasing single-family properties to rent out.
Forecasts for the remainder of the year remain bleak, with contacts anticipating 2011 sales will fall short of last year’s total. Respondents do not expect a significant improvement in residential real estate within the next one to two years.
File under: There’s always next year
