Although lackluster economic conditions persist, real estate lending in our local markets has begun to show some signs of recovery. Improvement in our residential real estate markets has recently occurred primarily because excess inventories of available homes have come down as the market has started to absorb existing product and new starts have been delayed. While sales activity increased during the current quarter, it remains at levels significantly below what is considered normal for the Company’s markets. As a historically high growth area, relocation sales have typically represented a sizable portion of our local real estate market but have suffered during this period because of limited job opportunities. The broader local real estate markets have under performed largely because the economy has created uncertainty and buyers have either elected to forego home purchases in the interim or have been unable to qualify for financing. When the area’s employment situation improves, our markets and our performance should quickly follow.
SOURCE Wake Forest Bancshares, Inc.