Beige Book For Atlanta GA And San Francisco CA Real Estate
Twelfth District--San Francisco Real Estate and Construction
Activity in residential real estate markets continued at high levels but showed further evidence of softening in some areas. The pace of home construction and sales was rapid in general, and sales prices held steady or increased in most areas. However, a decline in the pace of home sales and slowdowns in other indicators reflect significant cooling in some previously hot markets, notably in Hawaii, Arizona, and parts of California. On the non-residential side, office vacancy rates continued to fall and rental rates rose further in most major markets, and building activity has picked up for commercial projects and public structures. Construction costs also rose further in some areas, due to elevated prices on selected materials and higher wages for skilled workers.
Sixth District--Atlanta Real Estate
Residential real estate activity continued to slow in late January and February, but still remained at high levels. Reports from Realtors noted a deceleration in both new and existing home sales, while most homebuilders reported that new home construction was similar to year-ago levels. Condominium development showed signs of weakening as several developers put projects on hold because of soft pre-sales or escalating construction costs. Commercial development remained at modest levels, but most contacts reported improving conditions and steady absorption rates. Redevelopment in Hurricane Katrina-affected areas continued to be dominated by cleanup and debris removal.
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