The Fed’s Beige Book for the Southeast in September had the following notes on land development:
The region’s homebuilders and Realtors both reported the pace of home sales had softened slightly since August. Despite this, homebuilders noted an increase in traffic with several reporting the credit quality of potential buyers had improved as well. Demand for low- to mid-priced homes remained relatively strong, supported by the first-time home buyer tax credit and increased interest by investors. However, most continued to note downward pressure on home prices from foreclosures and short-sales. The majority of homebuilders and contractors observed construction remained very low. The sales outlook among both builders and Realtors over the next three months was less upbeat than reported in August.
Private-sector commercial real estate activity in the Southeast weakened further in September. Vacancy rates continued to rise across all segments, and contacts continued to cite downward pressure on rents. Developers reported fewer backlogs and more projects were delayed or canceled. Contractors expected activity to continue to decline into 2010.
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