Optimism rises for residential construction
Posted on Tuesday, November 4, 2014 at 9:05:26 AM
Confidence in today's housing market is on the rise. With low residential financing rates, fewer foreclosures and other positive trends, 2015 could become a good year for this segment.
According to the U.S. Census Bureau of the Department of Commerce, construction spending in September was 2.9 percent higher than figures reported at the same time last year. The seasonally adjusted annual rate was estimated to reach $950.9 billion for the month. The first nine months of 2014 saw spending climb to levels 6.1 percent above the same period in 2013.
The overall strong conditions emerging in the housing market are encouraging for homebuilders as well.
The National Association of Home Builders' chief economist David Crowe explained that single-family homebuilders are confident enough to keep moving forward in the industry.
"This is mostly due to significant pent-up demand and steady job and economic growth that will allow trade-up buyers who have delayed home purchases due to job insecurity to enter the marketplace," he added.
For the entirety of 2014, the NAHB forecasts 991,000 housing starts, which would be a 6.6 percent increase compared to last year.