In most cases, the rise in interest rates is credited with slowing demand, while the lack of suitable lots, particularly in Georgia and Florida, is a major restraining factor as well. Most District Realtors contacted report that home sales in April and May were equal to or below year-ago levels. Additionally, contacts indicate that home-price increases are slowing, and there is evidence that concessions are on the rise, as are customer negotiations. In contrast to residential real estate markets, the region's commercial real estate markets remain strong. Occupancies are described as healthy, while absorption continues strong.
Office space is scarce in several key markets.
Speculative office development continues in several parts of the District. Industrial markets remain tight around the District and new projects continue to be announced. Retail growth is substantial. Manufacturing Reports from the industrial sector are mostly positive. Growth in the region's auto industry is stimulating production of parts and components.