Looking forward to spring sales, most retailers remain cautious, anticipating only slight increases over last year. Construction was generally flat. A majority of real estate contacts report that inventories of unsold homes are adequate for expected sales. A notable number of Realtors said that inventories were too low in their area of the region, but few Realtors reported overbuilding. Realtors expect an increase in first and second quarter homes sales compared with a year ago, while builders anticipate home building will remain close to year-ago levels.
Contacts generally report that commercial real estate markets continue to improve.
Declining vacancy rates and higher rental rates are propelling new industrial, office, and retail development in much of the District. Overall, the multifamily sector remains healthy. Manufacturing Manufacturing appears varied but generally positive at this time, according to factory contacts. Automotive suppliers are expanding and their exports are increasing, resulting in overtime for employees. The lumber industry is picking up in parts of the District, and orders are increasing for machinery producers and food processors.