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October 2018   Volume 44, Number 10      
 

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Construction Spending Increased 0.4 Percent From May to June

Construction spending increased 0.4 percent from May to June, marking a 4.5 percent year over year increase to a seasonally adjusted annual rate of $1,309.5 billion, according to data from the U.S. Census Bureau. Construction spending also rose 4.3 percent during the first five months of the year as compared to 2017, totaling $497.1 billion.

As compared to other sectors of real estate, residential real estate construction was among the top three sectors to experience the greatest annual percent change from 2016 to 2017, according to seasonally adjusted data collected by the U.S. Census Bureau.

Spending in the private sector increased 0.8 percent for residential construction. There were especially strong gains in the single-family construction sector with a year-over-year increase of 8.2 percent and month-over-month increase of 1.6 percent. Multi-family housing spending increased 1.6 percent month-over-month and 4.2 percent from 2017.

The increase in construction could be a good sign for residential real estate given the challenges that homebuyers have faced in an inventory challenged market. The available inventory in some regions of the U.S. has not kept pace with the demand for homes from homebuyers. This has led to bidding wars in multiple markets as homebuyers compete over limited inventory.

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In this issue:

Home Sales to International Buyers Decline, Says NAR

25 Percent of U.S. Homes Now Equity Rich

Buyers Seek Out Smaller Markets As Home Prices Climb in Midsize Cities

New Home Prices Have Dropped to Lowest Levels Since February 2017

Pending Home Sales Increase 0.9 Percent in June

Construction Spending Increased 0.4 Percent From May to June

Mortgage Rates Make a Comeback in Critical Moment for Housing

Weekly Mortgage Applications Decline as Home Prices Rise

Zillow Group Acquires Mortgage Lenders of America

How to Become a Neighborhood Expert and Build a Strong Real Estate Business

 


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