St. Louis Area Real Estate And Construction
Residential real estate activity in the Eighth District showed signs, albeit mixed, of slowing. January home sales were up by 23 percent in Memphis and 19 percent in Louisville compared with a year ago. Home sales, however, were down 6.9 percent in Little Rock and 2.7 percent in St. Louis over the same period. Residential construction activity also slowed throughout the District in January. Compared with January 2005, January single-family housing permits rose 31 percent in Jackson, Tennessee, 22 percent in Evansville, Indiana, and 7 percent in Little Rock. Permits, however, were down 45 percent in Louisville, 23 percent in Memphis, and 6 percent in St. Louis over the same period.
Commercial real estate market conditions were mostly positive throughout the Eighth District. Industrial vacancy rates declined during the fourth quarter of 2005 in Memphis, St. Louis, and Little Rock. In contrast, Louisville's industrial vacancy rate increased over the same period. Memphis, St. Louis, Little Rock, and Louisville all saw a year-end decline in office vacancy rates compared with the third quarter of 2005. Contacts indicated that commercial construction is active in St. Louis, remains strong in south central Arkansas, but is down in Little Rock. Contacts in northeast Mississippi reported that commercial construction activity has returned to average levels after last year's sharp increase. Contacts in Memphis reported that industrial construction activity is slowing, while contacts in southwest Arkansas and southwest Indiana reported new industrial projects.
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