Construction The District's single-family housing market continued to slow in most areas, but activity still remains at high levels. A majority of contacts reported that construction during the second quarter was slightly below last year's frantic pace but construction strengthened slightly during the early part of July. Over one-half of builders contacted said that new home sales were down compared with last June and that sales continued to soften in July. Most realtors described sales as flat or down slightly compared with last year. Inventories of unsold homes continued to rise in several markets, and the rate of increase in home prices slowed.
Most contacts expect activity to continue to soften through the remainder of the year.
Commercial real estate markets remained robust across the Southeast. Occupancies and absorption were described as healthy. Office space remained scarce in several markets, with speculative development continuing but at a slightly slower pace than previously. Lenders are becoming more cautious and are requiring higher levels of pre-leasing. Industrial markets remained tight across most of the region as firms continue to move into the District.