My Real Estate Blog

The Federal Reserve's latest region-by-region analysis of the national economy, the so-called "Beige Book" released last week, has an important message for anyone interested in real estate: It's a gradual recovery out there, but it's for real and it should prove durable.

The Fed's report, which is based on detailed assessments from 12 member banks spread around the country, noted that the home purchase tax credits have stimulated sales as they were intended to do.

But what happens now that they're gone? Most economists in the Federal Reserve System think that low interest rates and fairly low prices will continue to make the housing market attractive for prospective buyers.

Some dramatic pickups in local sales this spring were highlighted by the Fed -- the state of Maine, for instance, Baltimore sales jumped by 26% and Washington DC by 36%.

No one is predicting a break-out of big-time home price appreciation across the country anytime soon. But numbers suggest that home buyers and owners can at least be confident that we've reached or passed the bottom in most areas.  Nationwide, the index found prices in April were up by almost one percent.

Of course there are still some major roadblocks in the way of any full economic and housing market recovery. Tops on the list: the high and persistent unemployment numbers.

As usual, the picture is complicated. But overall I think the Federal Reserve probably has the outlook pegged about right