Both Realtors and builders anticipate modest increases in home sales and construction during the second quarter compared with the previous year. However, they expect the District's housing market to slow somewhat in the third quarter. Commercial real estate markets remain healthy throughout the region. Most suburban and central business district office markets continue to record rising occupancy and rental rates. The industrial sector has begun to show some signs of a slowdown as vacancy rates have risen slightly.
Retail markets remain healthy across most of the region.
Overall, both developers' and real estate agents' outlooks remain optimistic for the rest of the year. Although fewer contacts indicated production gains than a month ago, new orders are reportedly beginning to rise, and the factory workweek is increasing for most industries. The factory outlook remains positive, with more contacts expecting to increase employee payrolls and capital expenditures in the near term. New orders for aerospace firms should stabilize regional industry employment levels. The shipyard industry continues to expand along the Gulf Coast, and Louisiana's chemical industry is expanding.