Residential real estate demand remains strong

 

The Federal Reserve Beige Book revealed strong market activity in the 12 Federal Reserve districts despite inventory shortage.  The Beige Book provides insights into the current economic conditions in the 12 districts based on reports from banks and branch directors, interviews, and online surveys filled by economists, market experts, etc.  According to the Beige Book, demand from buyers remained steady or increased in the districts, leading home builders to ramp up production.  Record low inventory of homes has led to a surge in demand for rental properties in New York, Chicago, St. Louis, and Kansas City.  Despite the strong demand, home sales are forecast to increase marginally because of the low inventory levels.  The residential market in New York has picked up after a slow start this year. Bidding wars and multiple offers have become common as existing homeowners are not motivated to sell and move.