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.
Southeast Housing Update: Investors Continue to Contribute to Improvements in the Region
Southeastern housing contacts continued to indicate sales gains in September. Brokers indicated that sales remained slightly ahead of the year-earlier level while builders reported that sales growth had slowed notably in September. Most builders described new home sales as flat to slightly up in September on a year-over-year basis (see the chart).
In the Atlanta Fed's latest housing poll, we asked Southeast brokers about the distribution of home buyers in their market. They indicated that existing homeowners account for the largest share of market participants in the Southeast, close to half, while first-time home buyers and investors both account for about a quarter of the market. Investors are more active in the Florida markets and account for nearly a third of buyers across the state, according to our poll. However, several brokers reported that there are submarkets where investors account for close to two-thirds of sales.
Digging a little deeper, we heard that Florida investor-buyers were both foreign and domestic, while outside of Florida, investors were mostly domestic (see the chart).
The majority of Florida brokers also indicated that investor sales had improved from earlier in the year, while areas outside of Florida reported that investor sales were flat to slightly up (see the chart).
The outlook for sales to investors next spring remains strong among Florida brokers, but the majority of brokers outside of Florida anticipate sales to investors will be similar to recent levels (see the chart).
Perhaps contributing to the lower levels of sales to investors in some Southeast markets are low home inventories. Both builders and brokers indicated that home inventories continued to decline on a year-over-year basis. Most brokers reported that home inventories were flat to down from August to September while most builders indicated no change.
The majority of Southeast builders and brokers continued to report modest annual home price gains again in September (see the chart).
The outlook among Southeast builders and brokers remained positive. Builders' prospects were a bit more upbeat while brokers anticipated flat to modestly positive annual sales growth over the next several months.
Note: September poll results are based on responses from 58 residential brokers and 28 homebuilders and were collected October 1–10, 2012. 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
TrackBack URL for this entry:
Listed below are links to blogs that reference Southeast Housing Update: Investors Continue to Contribute to Improvements in the Region:
- Southeast Manufacturing Slows in August
- It's Mostly Sunny in Florida
- Auto Manufacturing an Economic Boon for Tennessee
- Southeast Manufacturing Rebounded in June
- Southeast Manufacturing Dips in May
- Assessing the Impact of Oil Price Declines on Louisiana's Economy
- Seeking the Slack
- Middle Tennessee Consumer Confidence on the Rise
- Trials and Tribulations in Transportation
- Southeast Manufacturing: Solid as an Oak
- September 2015
- August 2015
- July 2015
- June 2015
- May 2015
- April 2015
- March 2015
- February 2015
- January 2015
- December 2014
- Banks and banking
- Beige Book
- Business Cycles
- Commodity Prices
- Consumer Savings
- Data Releases
- Disaster recovery
- Economic conditions
- Economic Growth and Development
- Economic Indicators
- Fiscal Policy
- Gulf Coast
- Health Care
- Holiday Sales
- Labor Markets
- Local Economic Analysis and Research Network (LEARN)
- Monetary Policy
- Natural Disasters
- New Orleans
- Oil Spill
- Real Estate
- Sales Tax