Skip to content

October 1, 2012

Residential construction expands in August, even as overall construction numbers drop

by Rylan Stewart
Home Renovations

Construction spending dropped 0.6 in August from the previous month, although it is up 6.5 percent on a year-over-year basis. Overall, residential construction spending showed the most strength, improving 0.9 percent. The improvement of the residential construction spending was somewhat expected given the current state of the real estate market.

Prolonged investor interest in discounted distressed properties has steadily removed foreclosure and short sale properties from the market, and improved owner-occupied demand has helped spur a turnaround in home prices.

[Related: The best housing news we have seen yet]

As properties leave the market, residential real estate supply has steadily declined. Since hitting a peak of 18 months of supply, the real estate market currently hovers at the “healthy market” level of six months.

[Related: The challenging real estate market]

 

—————————————–

Central Coast Lending is a California mortgage brokerage based in San Luis Obispo County. With offices in San Luis Obispo, Morro Bay, Paso Robles, and Arroyo Grande, Central Coast Lending is the top source for Central Coast mortgage, real estate, and home loan needs. To see why using a broker offers lower rates and superior service, click HERE. For a free, hassle-free online pre-qualification click HERE or call 805.543.LOAN to talk to one of our expert loan officers.


We will delete comments containing inappropriate links, obscenities, hate speech, and personal attacks. For a list of forum rules, click HERE.


Leave a comment