From the Federal Reserve:
Second District–New York
Growth in the Second District’s economy has slowed to a somewhat more modest pace since the last report. Prices of finished goods and services continue to rise at a subdued pace; cost pressures remain fairly widespread among service firms but have largely subsided among manufacturers. Labor market conditions have shown further signs of strengthening, except in the manufacturing sector, where hiring activity has slowed. Contacts in most industry sectors report that business has been steady or improving, though manufacturers report that growth has stalled in recent weeks. General merchandise retailers report that sales were mixed but, on balance, weaker since the previous report; auto dealers report that sales were steady to slightly stronger. Tourism activity has continued to show strength since the last report. Housing markets have been steady or stronger, with inventories rising to more normal levels. New York City’s commercial real estate market has continued to strengthen moderately, and there are scattered signs of a pickup in commercial construction. Finally, banks report that household loan demand has leveled off but that demand from commercial borrowers continues to grow; delinquency rates continue to decline, particularly for commercial loans and mortgages.
Construction and Real Estate
The District’s housing markets have been steady to stronger since the last report, while inventories have risen from unusually low levels in some areas. Rents have leveled off in Manhattan and Brooklyn–in part reflecting extensive luxury rental development coming on line–while rents in Queens have continued to increase briskly. New York City’s co-op and condo market was generally steady in the third quarter. Resale prices for apartments were little changed in Manhattan but continued to rise moderately in Brooklyn and Queens; sales volume was down more than 10 percent from the extraordinarily high levels of a year earlier but little changed from the second quarter.
Northern New Jersey’s housing market has continued to be mixed. Demand for single-family homes has remained sluggish, and so has new single-family construction, as builders remain reluctant to build for inventory. In contrast, a strong rental market has continued to spur multi-family construction, especially in areas easily accessible to New York City. Housing markets in western New York State flattened out in August and September, as both sales volume and prices leveled off. Multiple offers have become less common, as the inventory of available homes has increased from low levels.