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Construction spending improves on yearly basis

Posted on Wednesday, July 2, 2014 at 9:58:30 AM

One of the biggest problems for the U.S. housing market over the last year has been a lack of inventory. For buyers interested in affordable residential financing, it has been tough to find an ideal property or navigate the bidding wars that tend to follow.

However, conditions could start to improve, as more money is being dedicated toward the construction segment. According to the U.S. Census Bureau, construction spending over the first five months of 2014 increased more than 8 percent compared to the same time in 2013. In addition, total spending ticked up 0.1 percent from April to May. 

Despite these gains, the U.S. Census Bureau reported that residential construction spending actually declined on a monthly basis, down 1.5 percent in May compared to April. 

According to The Associated Press, this trend comes on the heels of a tough winter for the construction industry. Economists have predicted that this will reverse in the coming months, however, and conditions should begin to improve drastically.

For those interested in testing the housing market, this may be a very good thing. An increase in construction will lead to more properties for sale, helping everyone find their dream homes.