SouthPoint

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The Atlanta Fed's SouthPoint offers commentary and observations on various aspects of the region's economy.

The blog's authors include staff from the Atlanta Fed’s Regional Economic Information Network and Public Affairs Department.

Postings are weekly.


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07/19/2011


Southeast housing update: Atlanta Fed polls show softening home sales in June

Reports from Southeast housing contacts indicated that activity in the region softened somewhat in June on a year-over-year basis.

June 2011 SE Home Sales vs Yr Earlier

However, the majority of Florida brokers continued to report year-over-year gains.

June 2011 Broker Home Sales v Yr Earlier

We asked brokers to let us know what was preventing buyers in the Southeast from purchasing a home during the first half of 2011. Brokers' most common response was the inability of buyers to qualify for financing, followed closely by the buyers' inability sell their current home. Slow response from banks came in third, and Florida brokers reported this slow response was the chief obstacle to home purchase.

What has prevented potential home buyers from buying in 2011 thus far?

We then asked brokers which obstacles to buying a home had been the most problematic for buyers. Southeastern brokers clearly reported that the inability of buyers to sell their current home was most problematic.

SE Brokers: In your opinion, which one has been most problematic for buyers?

However, a look at Florida brokers' responses indicated that the buyers' inability to sell their current home along with slow response from banks was hindering sales.

Florida Brokers: In your opinion, which one has been most problematic for buyers?

Southeastern builders reported that construction activity was similar to weak levels a year earlier while the outlook improved a bit.

June 2011 SE Construction Activity

In June we revisited questions on home improvement construction that we posed at the end of the first quarter. The majority of builders reported that home improvement construction exceeded the year-earlier level, an improvement over first-quarter activity. The outlook also improved from earlier in the year as well.

Home improvement construction activity yr-over-yr basis

However, builders indicated that it remained difficult to pass along cost increases in the home improvement work they were bidding.

Have you been able to pass along costs increases in home improvement work?

Southeastern brokers indicated that buyer traffic remained positive in June on a year-over-year basis while builders noted buyer interest was similar to a year earlier.

June 2011 SE Buyer Traffic vs Yr Earlier

Note: June poll results are based on responses from 82 residential brokers and 37 homebuilders and were collected July 5–13, 2011.

The housing poll's diffusion indexes are calculated as the percentage of total respondents reporting increases minus the percentage reporting declines. Positive values in the index indicate increased activity while negative values indicate decreased activity.

By Whitney Mancuso, a senior analyst in the Atlanta Fed's research department

July 19, 2011 in Housing | Permalink

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The housing poll's diffusion crawls are measured as the amount of total participants confirming increases without the amount confirming decreases. Positive principles in the index indicate increased action while negative principles indicate reduced action.

Posted by: Toledo home insulation | 06/04/2012 at 07:40 AM

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