Construction spending slides
Real estate brief
By Inman News, Wednesday, September 3, 2008.Spending on residential construction projects in July fell 27.5 percent from a year ago, the U.S. Census Bureau reported this week. The seasonally adjusted annual rate of private residential construction was $357.8 billion in July, compared with $493.6 billion a year earlier, and was down 2.3 percent from $366.1 billion in June. Spending has fallen in each of the last 17 months.
Total construction spending, which includes residential, commercial, highways, schools, hotels and government buildings, sank 4.8 percent year-over-year in July, from $1.14 billion to $1.08 billion, and was down 0.6 percent from $1.09 billion in June. This rate is a projection of a monthly construction total over a 12-month period, adjusted to account for typical seasonal fluctuations in construction activity.
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Submitted by Al Greb on October 3, 2008 - 10:06am.
I feel sorry for the builders, these day its cheaper to buy a resale then to pay for a newly built home. Commodities are pricier.
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Submitted by Dan Connolly on October 19, 2008 - 8:51pm.
While it is sad for builders that did not read the writing on the wall, this kind of correction is needed. We saw a huge amount of building in our area over the last few years and the new home builders had dominated the market.
There had been many neighborhoods that were benefiting greatly from people coming in and buying distressed properties, renovating them and selling them. When the new home boom happened, the loft developers, condo and townhome builders ate the house flipper's lunch. The neighborhoods that were coming back stalled and started regressing. Now that the new home builders have stopped their spec builds, it may help our resale markets recover when the market comes back..
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