Aug
11

Construction Spending Increases as Demand Drops in June

August 11, 2012

Home building spending increases in JuneAccording to recent Commerce Department figures, construction spending in the U.S. increased in June to the highest level is almost three years. The .4 percent gain pushes the value of all projects up to $842 billion at an annual rate.

In addition, housing starts climbed 6.9 in June to a 760,000 annual pace, the fastest pace in almost four years. Housing outlays also rose 1.3 percent to bring its total value to $266 billion.

Other home building industry indicators did not fare as well. Unexpectedly, demand for new U.S. homes dropped 8.4 percent during June, and demand for existing homes dropped 5.4 percent. Spending on public construction also dipped 1.6 percent even as expenditures by state and local governments climbed.

However, even with a mixed picture for building new homes in Chicago and across the nation in general, borrowers are still seeing record low rates. the average rate for a 30-year fixed mortgage was down to 3.49 percent at the end of July, the lowest rate on record since 1971. Additionally, the average rate for a 15-year fixed mortgage dropped to a new record of 2.8 percent.

As the housing market continues its slow, steady recovery, builders are gearing up for expected higher demand, which means there is plenty of new Chicago real estate on the horizon.

Categories: Economy

About The Author

Read All Stories By Mitch Levinson

Mitch Levinson is the author of “Internet Marketing: The Key to Increased New Home Sales” published by BuilderBooks. He is an Internet marketing expert with expertise in search engine optimization, website development, email marketing, social media and CRM consulting services. He is known for creating effective programs that can be tracked through analytics to prove effectiveness and ROI. Mitch is founder and president of MLC New Home Marketing and MLC FlatFee Realty, as well as managing partner of mRELEVANCE, LLC, a Marketing, Communication, Interactive agency with offices in Chicago and Atlanta. He currently leads the Chicago team. A Multi-Million Dollar Sales Producer who earned an MBA in Computer Information Systems and eCommerce, he brings a unique perspective and experience to the field of real estate communications. Mitch combines the two interests in order to help home builders and developers gain a competitive advantage through the Internet and technology. When he isn’t behind a computer, he enjoys participating in sports and coaching his kids’ teams. Mitch resides in Arlington Heights, Ill., a northwest suburb of Chicago, with his family, which includes two rambunctious labs. Visit my Google+ profile.

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