Residential Construction Spending - April 2013 Update
Overall Residential Construction Spending
According to the National Association of Home Builders, after three consecutive months of slight declines, residential construction spendinghas increased 2.2% in February. Residential construction activity remained more than 20% above its year-ago level. This is welcome news for the US economy.
Single Family
Single-family homes continued to show strength in February and has surged more than 73% since bottoming out in mid-2009. The NAHB forecast calls for single-family housing starts to increase 23% and 29%, respectively, this year and next.
Multi-family
The multifamily sector took a step back in February, with spending on new multifamily projects slipping 2.2% from January. This is the first outright month-to-month decline since September 2011. Still, the overall trend remains strong for new multifamily construction activity as the level of spending is 52% ahead of the pace in February 2012 and has more than doubled the August 2010 low point.
Home Improvement
Home improvement spending improved slightly in February, gaining 0.5% versus the previous month and is 1.1% above the level from last year. This moderate gain suggests spending on remodeling activity has cooled over the past several months. Nonetheless, with existing home sales expected to register steady growth going forward, home improvement activity should see a similar pattern as sellers spruce up their homes for sale and/or buyers decide to make changes after they move into the home.
Philadelphia Area
In my own market, the Philadelphia suburbs, I have personally seen renewed interest from my buyer clients in new construction. As re-sale prices are rising, they see value in new construction in terms of price and choices.
Find New Construction Homes for Sale in Philadelphia Area
Visit my website to search for new construction homes in Philadelphia or to be notified when new homes come on the market.
To find out what your home is worth in the current market email me or call 484-388-1802.
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