FDII NEWS RELEASE
FfDHAI. Dil'051T INSUIAHCI COIPOIATION
FOR IMMEDIATE REI.EASE PR-17Q-91 (11-14-91)
I.ATEST FDIC SURVEY INDICATES REAL ESTATE MARKEi' REOJVERY HAS SI.CMED
Real estate markets arourxi the country are continuin; to inprove, but
at a slower rate than had been previously expected, accx:,rdin:J to sw:vey
results released today by the Federal Deposit Insurance corporation.
"'Ille results suggest that the reo:::,very in real estate markets has
slo;,yed. in many areas of the country ard has yet to take hold in others," said
William R. Watson, Director of the FDIC's Division of Research ard statistics.
'!he FDIC's fin:linJs are contained in the agency's latest quart.erly
su:rvey of Real F.state Trerrls, which is based on nationwide interviews with
mre than 450 senior examiners ard liquidators at federal bank ard thrift
regulatory agencies. '!he latest sw:vey presents the assessment of trerrls in
real estate market corxlitions between late July ard late october.
'!he FDIC said its cx.t1lf05.i.te in1ex for real estate markets trer:ds
nationwide was 57 in october - down fran 64 in July ard 61 in April. Urrler
the stnmna.ty scorixq system used by the FDIC, values al:>ove 50 iniicate that
mre respoments said local real estate corxlitions -were inprovixq than cited a
decline. Values bele7N 50 irxlicate the ewosite. on a regional basis, the
st:ro~est results in october -were reported in the south (63) ard Midwest (59),
while the weakest -were in the west (56) ard Northeast (49).
'Ille survey also gives separate read.in;Js on develcpne.nts in both
residential ard carmercial real estate markets.
With respect to hoosixq markets, the national in1ex was 63 in octaber.
'!his reflects 43 percent reportixq inproved. corrl.itians in their local areas in
the prior three m:mths versus 16 percent who fow'rl corrl.itions deteriorated.
-mre-
FEDERAL DEPOSIT INSURANCE CORPORATION, 550 SlqnllNnth St.. N.W., WatNngton. D.C. 20429 • 202.a 8888
FfDHAI. Dil'051T INSUIAHCI COIPOIATION
FOR IMMEDIATE REI.EASE PR-17Q-91 (11-14-91)
I.ATEST FDIC SURVEY INDICATES REAL ESTATE MARKEi' REOJVERY HAS SI.CMED
Real estate markets arourxi the country are continuin; to inprove, but
at a slower rate than had been previously expected, accx:,rdin:J to sw:vey
results released today by the Federal Deposit Insurance corporation.
"'Ille results suggest that the reo:::,very in real estate markets has
slo;,yed. in many areas of the country ard has yet to take hold in others," said
William R. Watson, Director of the FDIC's Division of Research ard statistics.
'!he FDIC's fin:linJs are contained in the agency's latest quart.erly
su:rvey of Real F.state Trerrls, which is based on nationwide interviews with
mre than 450 senior examiners ard liquidators at federal bank ard thrift
regulatory agencies. '!he latest sw:vey presents the assessment of trerrls in
real estate market corxlitions between late July ard late october.
'!he FDIC said its cx.t1lf05.i.te in1ex for real estate markets trer:ds
nationwide was 57 in october - down fran 64 in July ard 61 in April. Urrler
the stnmna.ty scorixq system used by the FDIC, values al:>ove 50 iniicate that
mre respoments said local real estate corxlitions -were inprovixq than cited a
decline. Values bele7N 50 irxlicate the ewosite. on a regional basis, the
st:ro~est results in october -were reported in the south (63) ard Midwest (59),
while the weakest -were in the west (56) ard Northeast (49).
'Ille survey also gives separate read.in;Js on develcpne.nts in both
residential ard carmercial real estate markets.
With respect to hoosixq markets, the national in1ex was 63 in octaber.
'!his reflects 43 percent reportixq inproved. corrl.itians in their local areas in
the prior three m:mths versus 16 percent who fow'rl corrl.itions deteriorated.
-mre-
FEDERAL DEPOSIT INSURANCE CORPORATION, 550 SlqnllNnth St.. N.W., WatNngton. D.C. 20429 • 202.a 8888
-2-
However, the October assessment for hOJSuq market trenJS is less upbeat than
in the previOJS two surveys. 'Ihe irrl.ex was at 73 in July (when 54 percent of
those surveyed reported i.ng;:,rove.ments in residential markets) an::l at 70 in
April (when 52 percent cited i.ng;:,rove.ments).
As in the two previOJS surveys, assessnents of canmercial real estate
market trerxis were less p:::sitive than those for the hOJSuq markets. 'Ihe
irrl.ex score of 48 for canmercial markets (down slightly fran 51 in July)
reflects the fact that nore respon::lents said con.1itions deteriorated (23
percent) than said con.1itions improved (18 percent).
"Negative assessments of canmercial market con::litions were far nore
comm:::m in the West an::l in the Northeast than elsewhere in the country," Mr.
Watson added.
'Ihe FDIC survey also asks examiners to ga'I.X}e the level of bank fun::ling
for real estate construction an::l develop.nent projects. In October, IOOSt of
those interviewed said they saw no dlan:;;Je in the level of fun::ling for the
construction of canmercial build.in;Js (68 percent) an::l for hanes (58 percent).
However, 26 percent said they believe banks in their area became less active
lerrlers for canmercial projects duruq the prior three m::mth period, while
five percent thought banks became nore active. As for residential
construction loans, 21 percent said banks were less active duruq the three
nonth period, blt alnnst the same prop::,rtion (19 percent) said banks were nore
active.
# # #
However, the October assessment for hOJSuq market trenJS is less upbeat than
in the previOJS two surveys. 'Ihe irrl.ex was at 73 in July (when 54 percent of
those surveyed reported i.ng;:,rove.ments in residential markets) an::l at 70 in
April (when 52 percent cited i.ng;:,rove.ments).
As in the two previOJS surveys, assessnents of canmercial real estate
market trerxis were less p:::sitive than those for the hOJSuq markets. 'Ihe
irrl.ex score of 48 for canmercial markets (down slightly fran 51 in July)
reflects the fact that nore respon::lents said con.1itions deteriorated (23
percent) than said con.1itions improved (18 percent).
"Negative assessments of canmercial market con::litions were far nore
comm:::m in the West an::l in the Northeast than elsewhere in the country," Mr.
Watson added.
'Ihe FDIC survey also asks examiners to ga'I.X}e the level of bank fun::ling
for real estate construction an::l develop.nent projects. In October, IOOSt of
those interviewed said they saw no dlan:;;Je in the level of fun::ling for the
construction of canmercial build.in;Js (68 percent) an::l for hanes (58 percent).
However, 26 percent said they believe banks in their area became less active
lerrlers for canmercial projects duruq the prior three m::mth period, while
five percent thought banks became nore active. As for residential
construction loans, 21 percent said banks were less active duruq the three
nonth period, blt alnnst the same prop::,rtion (19 percent) said banks were nore
active.
# # #