Real estate observers are gaining confidence in the health of the commercial and residential markets, the Federal Deposit Insurance Corp. reported Wednesday.
In a quarterly survey that asks bank examiners to assess real estate market conditions, the FDIC said sales of existing homes picked up in the second quarter while vacancy rates in commercial office buildings declined.
The poll surveys examiners from the four bank regulatory agencies and converts the results into a 100-point scale. The most recent survey yielded a score of 69, unchanged from the April results but 8 points higher than the January score.
Any score above 50 indicates that a majority of those polled believe that real estate conditions are improving.
Sixty-four percent of the 293 examiners polled said the pace of existing-home sales was above average, up from 61% in the April survey. Nearly 60% reported that prices for commercial property increased during the quarter.
"The steady decline in excess commercial space and rising sales prices are generally positive signs," said FDIC Chairman Donna Tanoue. "However, we are carefully monitoring developments in local commercial markets for overbuilding."