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local edition ANALYTICS to moderate" economic growth continues to be the theme at the Federal Reserve, which released its Beige Book tracking expansion across its 12 districts from October through mid-November. The Fed reported improvements in residential real estate activity in Boston, Philadelphia, Chicago, St. Louis, Minneapolis, and San Francisco, with slower single-family home sales softening real estate in most of the remaining districts. Meanwhile, increased demand, "low to declining" inventory levels, and slowly improving new home construction were cited by most districts as factors contributing to rising home prices, though increases have slowed. Inventory levels were reported as being particularly low in Philadelphia, Richmond, Kansas City, Dallas, and Chicago, with the last city reporting a record low in the number of homes for sale. In financing, banking conditions reportedly remained stable in a majority of districts. "Loan volume showed a modest increase in Philadelphia, Chicago, and San Francisco, while Boston and Atlanta reported a moderate rise. Dallas noted that loan demand softened across most lines of business during the reporting period," the Fed reported. Lower residential mortgage activity was reported in many districts, attributed by some banks to increased interest rates. On the brighter side, "[s]everal districts reported increased credit quality, as delinquencies have continued to decline and fewer problem loans have been reported." Commercial real estate activity was mixed at the local level, though has been a premier destination for years and now tops San Francisco and New York City as the most expensive city in the country, according to the annual Coldwell Banker Real Estate 2013 Home Listing Report (HLR), which ranked Malibu as the most expensive place to live in the United States. According to the annual report, an apples-to-apples comparison of four-bedroom, two-bathroom homes in more than 1,900 real estate markets across the United States, a sample-sized home in the affluent beach community of Malibu lists for $2.15 million, The M Report | 57 se c on da r y m a r k e t cial real estate in the San Francisco district, and Cleveland saw gains in affordable housing and shalegas-related activity." According to the Fed, market participants in Philadelphia, Atlanta, Kansas City, and Dallas maintain a forecast of continued improvement in commercial real estate, while "contacts were cautiously optimistic in Boston and Cleveland." Finally, builders in several districts continue to face labor problems, indicating a possible drag on construction over the coming year. High-skilled trade labor has been particularly scarce in the Philadelphia, Cleveland, Kansas City, and San Francisco districts. WASHINGTON, D.C. // "Modest a na ly t ic s california // When the rich and famous need to get away from their whirlwind lives, they head to the soft, sandy beaches of Malibu, California. Malibu Malibu ranked most expensive market, Cleveland ranked most affordable. compared to $63,729 in Cleveland, Ohio. "With its laidback, yet starstudded lifestyle, Malibu is undergoing a transformation from a seasonal destination to a year-round locale," said Madison Hildebrand, an agent with Coldwell Banker Residential Brokerage in Malibu and star of Bravo's Million Dollar Listing. He added: "Situated on the Southern California coast with beautiful homes and even more stunning views, you're not only paying for world-class properties, you're paying for a way of life." Cleveland was ranked as the most affordable real estate market in the 2013 Coldwell Banker Home Listing Report, where an average four-bedroom, two-bathroom home lists for $63,729. "Cleveland's friendly, hometown feel draws people of all ages, and in recent years, the community has been revitalized with more young professionals entering the market," said Ed Dolinsky, president of Coldwell Banker Hunter Realty. "Energized by a growing tech hub that effectively supports nearby renowned hospitals and research institutions, this Midwest city continues to reinvent itself through its diversified business sectors and strong sense of neighborhood communities." The report identified 20 markets where a four-bedroom, two-bathroom home costs more than $1 million, whereas in eight markets a similar home lists for less than $100,000, a telling sign as the country moves away from the Great Recession. The report also found that the average listing price of a four-bedroom, two-bathroom home in the survey of more than 1,900 markets and 52,000 listings was $301,414. The Golden State holds 13 of the top 25 spots for the most expensive markets in the United States. New York is the only state that had markets ranked on both the most expensive and most affordable lists. In contrast, 60 percent (15) of the 25 most affordable markets are in the Midwest. s e r v ic i ng Cooling economic indicators are leading homeowners to stay warm indoors instead of venturing out to view homes this winter. California Dreaming many districts said activity was stable or had improved slightly. Demand for space was driven according to regional interests: "Philadelphia, Cleveland, Richmond, Chicago, St. Louis, and Minneapolis all saw gains in industrial construction, while Boston, Chicago, and St. Louis cited a rise in hotel construction," the Beige Book said. "The technology sector drove demand for commer- Or ig i nat ion Fed Reports Slowdown in Real Estate Amid Modest Economic Growth