Construction Spending Reaches New Heights
Real Estate Pulse 2013:
It continues to be a promising
year for the real estate industry in the U.S., especially in the Tampa Bay
area. We are seeing irrefutable signs of
housing recovery. The latest excitement to
make headlines is the blossoming new construction occurring in today’s market. In July of 2013, construction spending increased
to the highest level in the last four years here in the United States. With the
recent low inventory levels, this is exactly what some buyers have been waiting
for. Spending increased as much at 5.2% nationwide
since July of last year according to the Commerce Department figures. As for private homebuilders, spending
increased .6 %, which is the greatest change we have seen since September
2008. Private residential construction
wasn’t the only category to boast large improvements, with non-residential and
factory construction also climbing to 1.3% and federal spending increasing by
1.1%.
What can be expected from these new increases in
construction? Well for starters, continual gains in employment opportunities, and
residential and non-residential housing construction should continue to improve
throughout the end of the year. These factors alone should contribute
significantly to the strengthening and expansion of our economy, providing new
jobs and new real estate. The real
estate industry and current economic conditions go hand-in-hand with each
other, where improvements in one category reap positive results for the
other. It is important, however, to be mindful
of the tight land inventory levels. It
is extremely beneficial to become knowledgeable of the current market
conditions in order to make the right decisions regarding your housing needs.
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