Federal Reserve Beige Book: August Brings Stabilization to Southeast

The Southeastern economy showed signs of stabilization in August, according to the latest Federal Rerserve Beige Book report, released September 9. Reports from real estate contacts indicated that the pace of decline in home sales continued to moderate in most areas compared with the same time a year earlier. The inventory of unsold homes remains elevated, in part because of the continuing supply of foreclosed properties, and this is said to be keeping downward pressure on home prices.

Reports from most District homebuilder and Realtor contacts indicated that the pace of decline in home sales continued to moderate in July and early August from a year earlier. Both Realtors and homebuilders noted that increases in supply because of foreclosures and short-sales were partially responsible for the price declines even as sales increased. Georgia homebuilders also cited difficulty competing with foreclosed home prices. Demand for starter homes remained relatively strong across the region and a pickup in sales of mid-market homes was also noted in some areas. The majority of homebuilders and contractors reported that new home construction remained at very low levels. The outlook among both builders and Realtors continued to rebound, with the majority anticipating positive year-over-year sales growth over the next several months.

Banking contacts continued to remark that credit availability remained tight. Several reports mentioned that the commercial real estate market continued to be affected by tighter lending standards. Banks were cited as remaining cautious on loan approvals, subjecting borrowers to increased equity requirements, continued scrutiny of appraisals, and generally applying stricter credit standards.

Conrad Lyles Realtors is a full service boutique firm specializing in Atlanta's most desirable neighborhoods, including Brookhaven, Buckhead, Sandy Springs and Vinings. For more information, visit http://www.conradlyles.com