While real estate and other industries remained weak in all 12 of the Federal Reserve districts, there is reason for optimism in several areas, according to the Federal Reserve, which released its periodic “Beige Book” report of economic activity on Wednesday.
In Boston, Fed contacts reported “early signs of improvement” in the residential real estate sector, and the news was equally good in New York where the book said banks are reporting “the most widespread rise in demand for residential mortgages in more than seven years.”
In Richmond, Va., commercial real estate is reporting moderate increases in activity and residential lending is rising because of strong demand for refinancing, the report said. Demand for refinancing is “hard to keep up with,” one of the Fed’s contacts said.
Meanwhile, commercial real estate weakened in Kansas City while residential real estate is holding steady, the report concluded.
Source: The Wall Street Journal, Meena Thiruvengadam
The hardest places to sell homes are those with falling prices and a large inventory of unsold homes.
Forbes magazine, which examined markets all over the country, concluded that Florida has the most markets that are really in the doldrums. Several cities there are overbuilt, saddled with lousy loans and flat sales.
Jonathan Miller, president of Miller Samuel, a Manhattan-based real estate appraisal company that assisted with the analysis, says it is hard for a city to climb out of a slowdown because in the best of circumstances there’s generally a three- to six-month lag between the time buyers start putting a serious dent into the inventory and the time when prices start to improve.
Here are the 10 markets where Forbes says the sales opportunities are the most challenging:
- Los Angeles
- Washington, D.C.
- San Diego
Sources: Forbes, Matt Woolsey (04/15/08)
I’m a bit stressed. About what? The market, our zip code, mortgage fraud- it’s effects on us and the fact that the West End is constantly over looked as Atlanta’s HOT in-town city by magazines. If I pick up another Atlanta Newcomer and see only Grant Park, East Atlanta, Virgina Highlands listed…I’ll be forced to ask Carl Ness (the mastermind behind our Christmas party that had us on the front page of the AJC) to write one of profound letters on the West End to the editors…
I know this all will change, and the “Nay Sayers”, and those that over looked us will regret it- either they will regret it or try to jump on the band wagon at the end and claim to have known it all along- or have been apart of it’s growth and discovery.
I guess I shouldn’t be too upset about us being over looked. After all, this does allow those seriously and committed to being apart of the community to move in and afford to buy while working on many of our ‘grass roots’ projects. …and I guess I can’t be too mad because unlike other locations, at least our neighbors are not stressing over their mortgage payments in this declining market. …And I guess I should not be stressed, because what goes down will always come back up…right? Right? Especially in Real Estate. Sure it will. We know Real Estate- and this is just a snag that was going to happen sooner or later. At least I didn’t pay 1million dollars for my home and it’s now appraising at 500K….. then it would be time for me to head south…….or to Maine,(the only state that did not dip in value this quarter)
Staying positive… that’s the key.
This too shall pass…but in the mean time, while I’m venting let the record show that I really DISLIKE the new beta yahoo mailbox.