The construction sector has been riding on a turbulent tide. At times, the rates increase and at others, they decline. The latest analysis of the housing market has shown that construction rates have risen once more.
According to the stats, construction spending has increased in the housing market because the number of governmental and nonresidential projects has declined. Last month, the rates increased by 0.1%. Though this value is low, it is still a rise. As for home construction, that has also increased by 1.1%. Among this, single family homes are being constructed more with their rates recorded at an increase of 2.3%.
Markets, other than the housing sector, do not have very good stats to report. The rates of non residential construction have decreased by 0.2%. As for offices, their construction rates remain nearly the same. This is probably because of the bad weather that is being observed over the past two weeks. Government construction has also decreased by 0.8%. The total money spent on this construction has been recorded at over $900 billion.
Spring is nearly here, and builders are hopeful that construction rates will become even better. The economy has improved and job growth has been steady. Economists are hopeful that home sales will rise. Considering only new homes, sales have increased by 9%, which is quite a big increase. The industry experts are really surprised at this because the weather has been really bad this year. Sales were also not good in December, so this rise has come as an even bigger surprise.
For the past two years, the housing sector has been recovering steadily. If this whole time period is considered, residential construction has grown significantly and even made a notable contribution to the overall growth in the economy. The industry experts claim that construction will also rise this year. However, the rates are not expected to be as great as the values in 2013.
With an increase in construction, sales are bound to rise and improve the economy more. Though mortgage rates will likely rise, they will still remain low enough. Last year saw issues with high taxes and government spending, but this year, both these episodes will not take place, which will strengthen the economy even more.
Let’s see what spring brings to the housing market and the rest of the country.