Magazine article American Banker

Real Estate Recovery Is Staying on Track, FDIC Survey Reports

Magazine article American Banker

Real Estate Recovery Is Staying on Track, FDIC Survey Reports

Article excerpt

The real estate market this fall continued the slow, steady recovery that began in the summer, according to a report released Tuesday by the Federal Deposit Insurance Corp.

After a year of declining ratings, the FDIC reported the first improvement in market conditions in July. Since then, the market's ratings have held steady.

"The recovery in both commercial and residential markets is on track, which is important to our economy and to the balance sheets of real estate lenders," said FDIC Chairman Ricki Helfer.

Each quarter, the FDIC rates the real estate market by polling examiners and liquidators from the four federal regulatory agencies. Their responses are combined into three indexes: residential real estate, commercial real estate, and a composite covering both markets.

The composite index for October was 64, the same rating as July's survey. The commercial real estate market also held steady with a 65 rating, while residential real estate performance dipped to 63, down from 64 in July.

Any score above 50 indicates that more respondents saw improvements in the market than declines.

"The composite index of 64 reflects the fact that far more respondents reported an improvement in the market than deterioration," said FDIC researcher James L. Freund.

For the first time since the FDIC began the survey in 1991, a majority of the respondents - 53% - said supply and demand in commercial markets is in balance, an improvement from 47% in July. In residential markets, 63% said supply and demand is in balance, up from 61% in July. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.