| Housing markets generally remain on the decline, prices are falling in some areas, new home construction is weak, the mortgage market is mixed and only a few areas show strong demand for owner-occupied housing, according to a federal report on a dozen U.S. regions. The [tag]Federal Reserve’[/tag]s last Beige Book report for 2006 is as grim as ever and based on Anecdotal information on current economic conditions in each of the 12 Federal Reserve districts. |  |
Fifth District–Richmond. Residential mortgage lending has tightened and volume is “weak,” but some increased demand in the new homes sector helped to stabilize loan volume. Contact reported builders slashing [tag]home prices[/tag] prompted more sales. The tighter money approach focused on properties, rather than applicants. Home sales were done 17 percent in the nation’s capital from a year ago and some say the trend will persist for two more years. Richmond, VA, contacts said home sales fell below 2005 levels. Buyers were picking apart resale home prices. [tag]Greenville, SC[/tag]’s growing economy, however, kept home sales in the positive category. Sixth District–Atlanta. Florida was the hardest hit market in this region, experiencing the “most significant declines” with condos feeling the brunt of the downturn. New home construction was well off last year’s frenzied rate. Weak market conditions are expected to “persist” for another six months, or at least over the next several months. (more…)