Commercial real estate markets remained firm, but residential markets showed some softening. Although homebuilders generally had steady sales, there were reports of a drop in demand for homes in the lower price range. Demand for existing homes also eased, but real estate agents said land and home prices have risen significantly. The consensus in the Third District business community is for continued but slower growth in most sectors. Manufacturers forecast a slight increase in business in the second half of the year.
Retailers anticipate some improvement in sales, and auto dealers expect sales to increase.
Most of the bankers polled for this report forecast slower growth in lending for the balance of the year. Real estate brokers expect commercial markets to remain firm for the rest of the year, but they anticipate further slowing in demand for both new and existing homes. May. One-third of the industrial firms contacted for this report indicated that they had increases in orders and shipments during the month, although about half said business was steady. Relatively strong demand continued to be reported for lumber, wood products, fabricated metal products, and commercial and industrial equipment. Although order backlogs at plants in the District have been steady, on balance, delivery times have lengthened slightly.