Dive Brief:
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Sales and construction of single-family homes were “largely flat” in November and December, while commercial real estate construction expanded, the Federal Reserve reported Wednesday in its latest “beige book.”
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The Fed’s summary of current economic conditions noted that the pace of home construction increased in San Francisco, but declined mostly everywhere else. This decline included areas where oil production, which has significantly dropped off, supports the economy.
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Sales of multifamily housing units in some areas were down from the “exceptionally high levels” in late 2013, but were still “fairly brisk,” and prices had increased somewhat, the Fed reported.
Dive Insight:
Overall, economic growth across sectors remained "modest to moderate" at the end of last year, despite falling oil prices that could lower housing prices and increase unemployment as 2015 progresses, the report said.
Still, the Fed predicts faster growth this year than last in most non-oil areas, as lower gas prices improve economies outside of Texas, Oklahoma, and Louisiana.