Beige Book Cites Real Estate as Bright Spot

October 11, 2012

Ten of 12 districts posted modest economic growth from August to early September, and real estate continues to be cited as a bright spot in the recovery, according to the Federal Reserve’s latest Beige Book. 

A still sluggish job market, uncertainty about possible tax increases, and the upcoming presidential election are restraining hiring, according to the report. 

However, a bright spot, according to the report: The housing market “showed widespread improvement.” All 12 districts monitored posted stronger existing home sales, and in some areas sales were “substantially” higher. 

The report notes that sales prices remained steady or increased in Boston, Atlanta, Minneapolis, Dallas, and San Francisco — areas where inventories remained constrained.

Also, the Beige Book noted a “robust” multifamily market, particularly in cities like Boston, New York, Atlanta, and Chicago. 

Source: “Beige Book: Economy Continues to Grow Modestly,” USA Today (Oct. 11, 2012)