The residential real estate market in New England is doing well. All contacts report moderate or high levels of activity, but complain about inventory shortages. If more properties were on the market, sales would be higher, as there is excess demand in many parts of the region. In Massachusetts, the pace of shrinkage in inventory has abated. Most contacts report moderate price increases.
Contacts hope to see an increase in supply and anticipate an active market in the next few months.
Insurance Most contacts in the insurance industry report modest growth in sales in the first quarter of 2001, but some mention a loss of revenue as many people are pulling out of equity products. All respondents say their employment levels are stable but one mentions a potential need for cutbacks if the general economic outlook does not improve. The labor market for information technology workers seems to be loosening slightly, which has also relieved wage pressure. One contact was quick to add that the market is still tight, just not as tight as last quarter. Capital spending plans have not changed much since our previous conversations in January.