Increases in excess of 10 percent compared with a year earlier are not uncommon. In response, some firms have implemented more cost sharing with their employees. Real Estate and Construction Residential real estate markets remain strong throughout the District. Agents continue to report rising prices and a surge in sales of both new and existing homes. New residential construction tapered off somewhat in May from April, with only five of the District's 12 metro areas posting an increase in building permits.
Agents also report vibrant commercial real estate markets.
Construction of new apartment complexes, particularly upscale, luxury apartments, is on the rise in several areas. A large decline in real estate loans of 5.7 percent was mostly responsible for the downturn in outstanding loans. Consumer loans also declined, but by a much smaller 1.2 percent. Commercial and industrial lending, on the other hand, continues to expand, rising 2.8 percent over the period. Agriculture and Natural Resources District row crops are reported to be in good condition in most areas, although some nonirrigated crops in southern parts of the District have recently deteriorated because of sparse rainfall and hot temperatures.