Construction activity remains strong in April
Posted on Monday, June 2, 2014 at 10:09:28 AM
The construction of new homes across the country is incredibly important for potential buyers and those interested in affordable residential financing. According to recent data released by the U.S. Census Bureau, builder activity has remained strong over the past several months.
In April, construction spending reached a seasonally adjusted annual rate of more than $953 billion, a slight improvement compared to March, the Census Bureau reported. It was also 8.6 percent higher than the estimate for April 2013.
Specifically, residential construction also ticked up over the past several months, the Census Bureau noted. Private construction spending hit $686.5 billion this past April, virtually unchanged from March.
In addition, Kevin Kelly, chairman of the National Association of Home Builders, explained that builders are seeing increased sales, but a tough U.S. economy has limited some growth so far this year.
"In a positive development, builders are adding inventory in anticipation of a further release of pent-up demand," said NAHB chief economist David Crowe. "We are only about half-way back to what could be considered a normal market, but relatively low mortgage rates and affordable home prices are other factors that should help keep starts and sales on a slow upward trajectory in the months ahead."