The economy is improving, but recovery in real estate is slow, the Federal Reserve said Wednesday in its beige book report.

The federal tax credit drove an increase in home sales, the report said. But it emphasized that most of the transactions involved lower-priced homes, while prices remained low and residential construction was weak.

The report also said the commercial real estate market remains soft and that there’s a significant excess supply. It pointed to New York and Kansas City as places where the commercial real estate business is worsening.

Source: The New York Times