From the New York Times

NOTE WHAT THE ARTICLE SAYS AT THE END ABOUT THE ST. LOUIS REAL ESTATE MARKET.

Economy Shows Signs of Slowing, Fed Says

By JEREMY W. PETERS
Published: July 26, 2006
In Cleveland, demand for personal loans is declining. In New York, tourism is receding. In Boston, there are reports of eroding consumer purchasing power.
The details vary from region to region, but the big picture is becoming increasingly clear: economic growth is downshifting across the country.
In today’s Federal Reserve “beige book,” a periodic assessment of regional economic conditions, words like “modest” and “mixed’ are used to describe economic activity where just a few months ago the adjectives were “solid” and “strong.”
Reports from the Federal Reserve’s 12 regional banks “generally indicated continued economic growth during June through mid-July, with numerous individual reports pointing to evidence that the pace of growth has slowed.”
Weakening consumer spending and a softer housing market were themes everywhere.
The Fed noted that consumers were spending less in stores and auto showrooms, in part because of high gasoline prices. With the exception of luxury retailers, many stores reported weak or flat sales. Car dealers across the country reported “undesirably high” inventories of sport utility vehicles, the report said.
Residential real estate activity declined “with only scattered exceptions.” The report confirmed what recent housing data has shown: homes are taking longer to find a buyer, and more of them are sitting on the market unsold.
Two notable exceptions to the housing market’s slide were the Dallas and St. Louis regions, the report said.
The report also noted isolated cases of pressure on home builders. In Florida, for example, some developers have converted units to rental properties after encountering difficulty selling them.